Spain Backs €265 Million Push for Pumped-Storage Hydro Capacity

Spain has committed €265 million to expand its pumped-storage hydropower infrastructure, channelling the funds through two competitive rounds of a government scheme called Boralmac. Eleven projects were selected, spanning both the upgrade of existing reservoirs and the construction of entirely new hydro facilities.

Among the standout awards, the BOREAL initiative in Extremadura secured the largest single grant — €44.9 million — with plans to repurpose the existing Alcántara and Cedillo dam infrastructure. In Asturias, the La Barca project won recognition for delivering the highest individual storage capacity of the entire portfolio. Two schemes in Castilla y León take an unconventional approach, drawing on drainage water from decommissioned mines rather than natural watercourses.

Taken together, the supported projects would add roughly 4.1 GW of installed turbine capacity and 49.9 GWh of total energy storage. Boralmac 2 participants must reach completion by 30 June 2035, while Boralmac 1 developers may qualify for an extension through 31 December 2035.

Spain’s national energy agency IDAE used renewable integration potential as a core selection criterion, alongside the ability to provide grid-stability services such as inertia support and black-start capability — functions that become increasingly critical as variable wind and solar generation expands. The programme positions pumped hydro as a central pillar of the country’s long-duration storage strategy.

Source: PV Magazine