AleaSoft Energy Forecasting, June 11, 2025. The new call for aid from the IDAE, with a budget of €700 million, aims to promote the deployment of energy storage at a critical moment for the photovoltaic sector. The increasing pressure of zero and negative prices, the lack of financing for projects and the slowdown in the PPA market make storage a strategic solution to improve the profitability of renewable energy projects.
A critical moment for renewable energy project financing
This boost for energy storage comes at a particularly sensitive time for the photovoltaic sector. The growing frequency of negative prices during solar hours in spring is significantly affecting both producers and funders of new projects. This situation has weakened sentiment in the sector and led to a slowdown in the signing of new PPA, a key element nowadays to secure new project financing.
Beyond support: storage as a driver of profitability
In this context, energy storage is emerging as a key component to ensure the viability of new renewable energy projects. Storage makes it possible to shift solar energy generation to hours of higher demand and higher prices, reduce exposure to negative prices, mitigate the risk of curtailments and improve the profitability of installations.
The €700 million IDAE call for aid
The Institute for the Diversification and Saving of Energy (IDAE) has launched a call for aid endowed with €700 million to finance innovative energy storage projects. The initiative, approved by the European Commission and published in the Official State Gazette (BOE), is part of the FEDER funds under the 2021‑2027 programme and is managed by the Ministry for the Ecological Transition and the Demographic Challenge (MITECO). The application period will remain open until July 15, 2025.
The aim of the call is to promote the deployment of storage systems that enhance the flexibility of the electricity system, facilitate the integration of more renewable energy and improve security of supply. Between 80 and 120 projects are expected to be co‑financed, with a total estimated capacity of between 2.5 and 3.5 GW.
The IDAE call includes grants of up to 85% of eligible costs, depending on the technology and the characteristics of the project. The maximum amount of aid per beneficiary will be 20% of the total call budget, and per project, 10% for pumped hydro technologies and 5% for the rest. Projects must be completed within a maximum of 36 months, and no later than September 30, 2029, unless otherwise provided by regulation.
Who can apply?
Eligible actions include grid‑connected stand‑alone storage systems with a minimum capacity of 1 MW, pumped hydro projects, new or on existing infrastructure, stand‑alone thermal storage in power‑to‑power (P2P), power‑to‑heat (P2H) or heat‑to‑power (H2P) configurations, and projects hybridised with renewable energy generation facilities, both existing and new.
Keys to maximising revenue and closing strategic agreements
At AleaSoft Energy Forecasting, the importance of this call is highlighted as a catalyst for investment in renewable energy, particularly in the photovoltaic segment, and for accelerating the deployment of storage.
In the current context, marked by increasing complexity in the electricity market and the need for flexible solutions, tools such as those provided by the AleaStorage division of AleaSoft allow developers to assess the long‑term profitability of storage systems, optimise their operation and estimate expected revenues based on participation in the day‑ahead and intraday markets, ancillary services, capacity market, and others.
Meanwhile, the AleaHub division of AleaSoft, through its Marketplace of PPA, renewable assets and projects, facilitates connections between sector players interested in signing PPA, hybridising assets, incorporating storage or accessing financing opportunities. All this in an environment where strategic collaboration is more crucial than ever.
Source: AleaSoft Energy Forecasting.
