Spain has awarded over 10 GWh of grid-connected energy storage capacity through the FEDER programme at €64933/MWh/year, achieving a markedly lower specific cost than Italy’s MACSE (Mechanism for Adequate Capacity and System Efficiency), one of Europe’s most advanced frameworks for large-scale storage deployment.
“The capex-equivalent value for Italian projects—derived from the €13000 per MWh-year support over 15 years at an 8% discount rate—results in approximately €111000/MWh/year,” explained Raúl García Posada, Director of the Spanish Energy Storage Association (ASEALEN), in an interview with Energía Estratégica.
Although Italian projects feature longer average durations of around seven hours, compared with four hours in the Spanish tender, García highlights that “the Spanish design appears to have been more efficient for the public administration”, mainly due to the lower public expenditure per unit of capacity deployed.
The comparison positions Spain’s approach as highly competitive in terms of efficient public spending—and not only for stand-alone systems. In hybrid renewable-plus-storage projects, the specific cost rises to €90142/MWh, but with public support intensities of 75–85% of capex, strengthening their financial viability, García added.
| Scheme / Country | Technology Type | Average Duration | Specific Cost (€/MWh) | Notes |
|---|---|---|---|---|
| Spain – FEDER | Stand-alone BESS | 4 hours | 64,933 €/MWh/year | Direct capex support |
| Italy – MACSE | Stand-alone BESS | 7 hours | 111,000 €/MWh/year(est.) | Based on 15-year revenue support |
Technology Mix, Scoring Criteria and Delivery Risks Through 2029
Of the 133 projects awarded, most correspond to Battery Energy Storage Systems (BESS), totalling 1925 MW and 6942 MWh, equivalent to 3.6 hours of duration. These assets primarily provide daily flexibility, with project durations typically ranging from two to four hours.
The tender also selected:
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Pumped storage projects: 182.5 MW / 1,327 MWh, including an ultra-long-duration 30-hour system (32.5 MW / 991 MWh).
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Thermal storage in concentrated solar power (CSP) plants: 240 MW / 1,165 MWh, with an average duration of 4.85 hours.
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Industrial thermal storage: 84.74 MW / 651 MWh, with an average duration of 7.69 hours, offering weekly flexibility.
Remarkably, Spain also approved very long-duration battery projects, including one of 15 hours (7 MW) and another of 16 hours (5 MW).
“This represents weekly flexibility using batteries—something that will be unique worldwide,” García noted.
In addition, several low-power thermal storage systems with unprecedented durations were selected:
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77 hours (0.39 MW)
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43 hours (0.23 MW)
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37 hours (2 MW)
These could potentially scale up electrical charging capacity through EU programmes such as the IF25 Heat Action line.
Value-Chain Scoring: A Decisive Criterion
One of FEDER’s distinctive features is its value-chain scoring system, which rewards projects whose components are designed, manufactured, integrated and installed within the European Union.
A minimum threshold of 3 out of 6 points is mandatory. In practice, this restricts the pool of eligible suppliers and requires a careful balance between cost and local content.
“This criterion has been decisive: the difference between winning and losing projects within the same region was often under three points,” García explained. It was “virtually the only differentiating parameter”, as project maturity and company type were fixed variables.
Territorial Adjustments and Execution Timeline
The final award list reduced the number of selected initiatives from 143 to 133 projects, leading to territorial rebalancing:
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Reductions in Andalusia and the Balearic Islands
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Increases in Castilla y León
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Adjustments in Catalonia, where fewer projects were selected but installed power rose, even though storage capacity slightly decreased.
The execution deadline is January 2029, three years after the definitive resolution expected before year-end. However, only 26 projects held a construction permit at the time of award, making administrative permitting the main delivery risk.
García also warned that projects scoring high on value-chain criteria (5–6 points) could face supply-chain constraints due to limited stationary cell manufacturing capacity in Europe, particularly if several projects enter construction simultaneously. Financial risk may also arise in projects receiving lower aid intensities, although “many have support levels above 60% and should not face major difficulties securing the remaining financing”.
Pumped-storage and thermal-storage projects, meanwhile, face inherently longer engineering and construction timelines due to civil-works requirements and integration with industrial processes.
Even so, García remains confident:
“We believe all the selected projects have sufficient time to meet the aid conditions.”
