The International Hydropower Association has launched a four-point action plan urging the Spanish government to accelerate pumped storage deployment to avoid rising energy waste and grid instability.
The association said Spain has doubled its wind and solar capacity since 2019, with renewables meeting 46% of electricity demand in the first half of 2025, while wholesale prices are 32% below the EU average.
IHA added that renewable curtailment is expected to exceed 3TWh in 2026, equivalent to the annual consumption of about 3 million households, and noted that balancing costs rose to 57% of the final electricity price in May 2025 from a 14% annual average.
The plan calls for differentiation between long-duration and short-duration storage in policy and targets to provide clearer investment signals.
It also proposes compensating system services and introducing revenue stabilisation mechanisms to attract lenders and reduce project costs.
Further measures include updating concession frameworks to allow longer terms for pumped storage projects linked to existing hydropower assets.
The association also urged the government to streamline permitting by increasing administrative capacity to accelerate delivery of strategic infrastructure.
“Spain has the potential to be the global blueprint for a successful energy transition, but they must not waste the progress they’ve made,” said Eddie Rich, chief executive of International Hydropower Association.
“We have the proven, mass-scale, and secure technology available now. Without immediate action to integrate pumped storage, the economic and structural consequences will be felt for decades.”