Energy Storage Subsidies in Spain

On April 28, 2025, Spain suffered the most severe large-scale power outage seen in Europe in recent years.

The incident was primarily triggered by a voltage surge caused by insufficient grid stability, compounded by delays in the grid operator’s emergency response, which ultimately led to a nationwide supply collapse.

This event laid bare the grid’s vulnerability to sudden shocks — exposing not only its limited capacity to regulate voltage fluctuations, but also underscoring the critical role of energy storage in safeguarding grid stability.

In the aftermath, the Spanish government swiftly activated its emergency response mechanism and rolled out a series of policies to accelerate the deployment of storage facilities. Backed by nearly €700 million in dedicated funding — sourced in part from the EU’s FEDER program — the measures specifically target innovative projects in standalone storage, pumped hydro, and related solutions.