Spanish large-scale energy storage call backs more than 11 GWh of projects – ess-news.com

Report on Spain’s Strategic Investment in Energy Storage to Advance Sustainable Development Goals

Introduction: Aligning Energy Infrastructure with Global Sustainability Targets

The Instituto para la Diversificación y Ahorro de la Energía (IDAE) has announced a provisional resolution allocating significant grant funding for innovative energy storage projects. This initiative, co-financed by the European Regional Development Fund (ERDF), represents a major step towards achieving several Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy) and SDG 13 (Climate Action). By investing in energy storage, Spain is building the necessary infrastructure to support a grid dominated by renewable energy, thereby reducing greenhouse gas emissions and ensuring a stable, clean energy supply.

Financial Allocation and Contribution to SDG 7: Affordable and Clean Energy

A total of €839,708,779 has been awarded to 144 projects, a commitment that will leverage a total investment of €1.995 billion. This funding is projected to deliver 2.61 GW of power and 11.14 GWh of storage capacity, directly supporting Target 7.2 of the SDGs, which aims to substantially increase the share of renewable energy in the global energy mix. The allocation is diversified across several key storage technologies:

• €343.35 million: Storage projects co-located with renewable generation facilities.
• €187.8 million: Pumped hydro energy storage (PHES) facilities.
• €177.4 million: Standalone storage sites.
• €131.1 million: Thermal storage facilities.

Fostering Innovation and Resilient Infrastructure (SDG 9)

The grants prioritize cutting-edge technologies crucial for modernizing Spain’s energy infrastructure, directly contributing to SDG 9 (Industry, Innovation, and Infrastructure). Of the 144 successful applications, the majority are for advanced Battery Energy Storage Systems (BESS), complemented by thermal and pumped hydro projects. Notably, over 90% of the standalone storage projects will incorporate grid-forming technology, a critical innovation for ensuring grid stability and resilience as reliance on intermittent renewables grows. The breakdown of funded projects includes:

• 124 Battery Energy Storage Systems (BESS)
• 17 Thermal Energy Storage (TES) and/or Power-to-Heat proposals
• 3 Pumped Hydro Energy Storage (PHES) sites

While a lack of eligible projects led to the redistribution of some funds initially earmarked for TES and PHES, the overall initiative strongly promotes the development of a robust and innovative energy infrastructure.

Regional Distribution and Support for Sustainable Communities (SDG 11)

The funding is distributed across numerous regions, promoting balanced development and enhancing energy security nationwide, which is fundamental to creating SDG 11 (Sustainable Cities and Communities). By decentralizing energy storage capabilities, the initiative helps build resilience at the local level. The primary beneficiaries are:

1. Andalusia: €374 million
2. Galicia: €104.3 million
3. Castilla-La Mancha: €96.6 million
4. Extremadura: €73.1 million
5. Valencia: €46.4 million
6. Castilla y León: €38.7 million

The remaining funds were allocated to the Canary Islands, Catalonia, Murcia, Asturias, Aragon, and other regions, ensuring a widespread impact on community sustainability.

Project Readiness and Overcoming Implementation Hurdles

A key factor in the selection process was project maturity, reflecting a commitment to responsible and timely implementation. A significant number of the successful projects have already secured essential environmental and building permits, demonstrating alignment with sustainable development practices.

• Over 115 projects have completed environmental impact assessments.
• More than 75 projects have obtained building permits (licencia de obras).

However, the report notes a significant challenge, as 65% of bidding projects still lacked access and connection permits, highlighting a critical bottleneck that must be addressed to accelerate the clean energy transition and fully realize the objectives of SDG 7 and SDG 13.

Analysis of Sustainable Development Goals in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 7: Affordable and Clean Energy
  • The article’s central theme is the funding of energy storage projects. Energy storage is critical for ensuring a stable and reliable supply of clean energy from intermittent renewable sources like solar and wind, directly contributing to the goal of providing affordable and clean energy.
• SDG 9: Industry, Innovation and Infrastructure
  • The initiative funds the development of “innovative energy storage projects,” including new technologies like “grid-forming technology.” This involves significant investment in “civil works” and building new energy infrastructure (144 sites), which aligns with building resilient infrastructure and fostering innovation.
• SDG 13: Climate Action
  • By facilitating the large-scale integration of renewable energy through storage, this initiative is a direct measure to combat climate change. Increasing the capacity for renewable energy helps reduce reliance on fossil fuels, thereby mitigating greenhouse gas emissions. The grant program itself is a form of national planning to integrate climate change measures.
• SDG 17: Partnerships for the Goals
  • The project demonstrates a multi-level partnership. It involves a national institute (IDAE), co-financing from a regional European fund (ERDF), and implementation by private sector entities (“project promoters”). This collaboration is essential for mobilizing the financial resources (€1.995 billion committed) and expertise needed for such a large-scale initiative.

2. What specific targets under those SDGs can be identified based on the article’s content?

1. Under SDG 7 (Affordable and Clean Energy):
   • Target 7.2: By 2030, increase substantially the share of renewable energy in the global energy mix. The article states the fund will back “1.41 GW/5.35 GWh of renewables-plus-storage capacity,” which directly enables a greater share of renewable energy to be integrated into the grid.
   • Target 7.a: By 2030, enhance international cooperation to facilitate access to clean energy research and technology… and promote investment in energy infrastructure and clean energy technology. The program, co-financed by the ERDF, represents a significant investment (“total endowment… was €839,708,779”) in clean energy infrastructure (storage).
2. Under SDG 9 (Industry, Innovation and Infrastructure):
   • Target 9.1: Develop quality, reliable, sustainable and resilient infrastructure. The funding for 144 sites, including standalone storage, pumped hydro, and thermal storage, is a direct investment in developing resilient energy infrastructure essential for grid stability.
   • Target 9.4: By 2030, upgrade infrastructure… with… greater adoption of clean and environmentally sound technologies. The focus on “innovative energy storage projects” and the fact that “more than 90% of the standalone storage projects will have grid-forming technology” points to the adoption of advanced, clean technologies.
3. Under SDG 13 (Climate Action):
   • Target 13.2: Integrate climate change measures into national policies, strategies and planning. This grant call, managed by a national energy agency (IDAE), is a concrete example of a national strategy designed to support the energy transition, a key climate change mitigation measure.
4. Under SDG 17 (Partnerships for the Goals):
   • Target 17.17: Encourage and promote effective public, public-private… partnerships. The structure of the initiative, where a public institute (IDAE) and a regional fund (ERDF) provide grants to private “project promoters,” exemplifies a public-private partnership to achieve sustainable development goals.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

1. Financial Investment Indicators:
   • Total public funding distributed: The article explicitly states that €839,708,779 in grants was awarded.
   • Total private and public investment mobilized: The article mentions that “project promoters committing a total €1.995 billion to the 144 sites.”
2. Infrastructure and Capacity Indicators:
   • Total energy storage capacity added: The fund is expected to back “2.61 GW/11.14 GWh of storage capacity.”
   • Capacity of renewables-plus-storage: The call will specifically back “1.41 GW/5.35 GWh of renewables-plus-storage capacity.”
   • Number of projects funded: The article specifies “144 successful applications.”
3. Technological Innovation Indicators:
   • Adoption of advanced technology: A specific metric is given: “More than 90% of the standalone storage projects will have grid-forming technology.”
   • Diversity of technologies supported: The article breaks down the projects by type: “124 are BESS, 17 are thermal energy storage (TES)… and three are PHES sites.”

4. Summary Table of SDGs, Targets, and Indicators

Source: ess-news.com