Spain’s Ministry for Ecological Transition and the Demographic Challenge (MITECO) has approved a second round of subsidies for innovative hydroelectric pumped storage projects (PSP), with a total allocation of about €90 million. The call is part of the Recovery, Transformation and Resilience plan and is expected to support close to 1,000 MW of new installed capacity with 7 GWh of storage capacity. The current call will support the development of new reversible hydroelectric plants, the expansion or modification of existing plants, the conversion of conventional hydro plants into PSPs, and the use of reservoirs to enhance hydraulic storage capacity.
The Institute for Energy Diversification and Saving (IDAE), operating under MITECO, will manage the process through a competitive bidding mechanism. In addition to economic feasibility, the evaluation will consider technical features that enable better integration of renewable energy sources and contribute to grid stability and secure system operation. Moreover, the assessment will also factor in job creation, regional and demographic impacts, contribution to a just transition, effects on the local industrial value chain, environmental performance, gender equality, participation of small and medium enterprises, and the level of technological innovation.
The financial support will be capped at about €50 million per project and beneficiary. All supported projects must be fully completed by June 30, 2035. Additionally, IDAE may advance part or all of the approved aid, subject to guarantees, to support project financing. Applications can be submitted between January 27, 2026 and February 26, 2026. The programme follows an earlier round under the BORALMAC initiative, in which around €100 million was granted to four PSP adding over 2,000 MW of new pumped storage capacity.
