Spain’s ministry for the ecological transition on Friday launched a EUR-90-million (USD 105.2m) support scheme for innovative pumped-storage hydropower projects as part of the second round of the BORALMAC state aid programme.

The new call for proposals is expected to enable the installation of close to 1 GW of capacity and add around 7 GWh of electricity storage to the Spanish power system, the ministry said.

The aid, funded through Spain’s EU-backed recovery plan, will support the development of new pumped-storage hydropower plants, the expansion or modification of existing facilities, the conversion of conventional hydropower plants into pumped storage, and projects using existing reservoirs to increase or improve storage capacity.

Applications will be accepted from January 27 to February 26 and will be managed by the ministry’s implementing agency IDAE) through a competitive tender process. Submissions will be graded based on economic viability, technical features, such as the ability to integrate renewables and provide grid stability, as well as socio-economic factors, including job creation, contribution to just transition, gender equality, favourable regional and value chain impact, SME participation and innovation, the ministry said.

Aid will be capped at EUR 50 million per project and beneficiary, and projects must be up and running by June 30, 2035. The ministry added that advance payments may be granted in some cases to facilitate financing.

The new call follows the success of the first edition of BORALMAC programme, which awarded EUR 100 million to four pumped-storage projects totalling just over 2 GW of new capacity, according to the ministry. Over the past two weeks, the ecological transition ministry kicked off funding programmes for the so-called innovative renewables, wind farm repowering and modernisation of small hydroelectric plants, and clean energy equipment manufacturing.