The Spanish initiative is part of the Recovery and Resilience Facility (RRF) and will seek to support the construction and operation of electricity storage facilities to reduce reliance on fossil fuels
The financial assistance will be provided in the form of investment grants to support the construction of electricity storage facilities. (Credit: Sandia National Laboratories/ Wikipedia)
The European Commission (EC) has granted its approval, in accordance with EU State aid regulations, to a Spanish initiative worth €350m. This scheme is part of the Recovery and Resilience Facility (RRF) and aims to provide support for the establishment and functioning of electricity storage facilities. By endorsing this measure, the Commission aids in advancing the objectives outlined in the European Green Deal, simultaneously reducing reliance on fossil fuels from Russia and accelerating the progress of the green transition, aligning with the REPowerEU Plan.
Spain has put forward a scheme with a budget of approximately €350m, and it will be entirely financed through the Recovery and Resilience Facility (RRF) after receiving the European Commission’s favourable evaluation of the Spanish Recovery and Resilience Plan and its subsequent adoption by the Council.
This scheme is set to be in effect until June 2026, with the following objectives: (i) enhance the proportion of renewable energy sources within the Spanish electricity grid; (ii) minimise the intentional curtailment of renewable electricity generation during periods of surplus; and (iii) ensure the reliable functioning of the Spanish electricity system.
As part of the scheme, the financial assistance will be provided in the form of investment grants, aimed at supporting the construction of electricity storage facilities. These facilities will have a combined capacity of around 1,000 MW and will be connected to either the transmission or distribution network. The maximum amount of aid that can be received by each beneficiary is set at €50m.
To ensure fairness and openness, the projects will be chosen through transparent and non-discriminatory bidding processes. The contracts for the selected projects are expected to be awarded before the conclusion of 2024. The electricity storage facilities are required to commence operations by the end of 2026, with the exception of pumped hydro storage, which may have a deadline of the end of 2030 for entering into operation.
European Commission executive vice-president in charge of competition policy Margrethe Vestager said: “This €350m Spanish scheme will help develop electricity storage units and replace electricity generation from expensive fossil fuels by renewable electricity.
“It is a good example of how EU State aid rules enable Member States to support renewable electricity generation in line with the European Green Deal objectives. And without unduly distorting competition in the Single Market.”