Spain has taken a decisive step to tackle one of the biggest bottlenecks in its clean energy transition: an overloaded power grid. At an event in Madrid, the government presented its new Electricity Transmission Grid Planning strategy to 2030, outlining a sweeping €16 billion investment package designed to expand and modernise both transmission and distribution infrastructure.
The urgency is clear. Recent capacity maps revealed that over 83% of Spain’s electricity distribution nodes are already saturated, leaving renewable developers, industrial consumers, and new entrants such as data centres struggling to secure connections. Without significant action, the country’s ambition to host massive volumes of solar power, green hydrogen projects, and battery energy storage systems would be compromised.
A Much Larger Grid Budget
The government’s plan significantly raises the ceiling on grid investment. The transmission network alone will now have €13.59 billion allocated, up from €8.2 billion in the 2021–2026 period. Of this, €1.52 billion will be dedicated to cross-border interconnections with the European Union – a crucial step if Spain is to become a true hub for renewable electricity in Europe.
On the distribution side, spending could exceed €20 billion by 2030. A partial lifting of long-standing investment caps – previously pegged to Spain’s GDP – will unlock an additional €7.7 billion for distribution and €3.6 billion for transmission. Importantly, the government insists that these increases will not translate into higher consumer bills, arguing that demand growth and shared sectoral responsibility will absorb the costs.
Meeting Explosive Demand Growth
The scale of anticipated demand is striking. Officials now project an additional 27.7 GW of transmission capacity will be required by 2030 – almost 14 times more than earlier forecasts. Nearly half of that, 13.1 GW, is expected to come from green hydrogen initiatives, with another 9 GW linked to industrial electrification. Data centres, which are proliferating across Europe, will add 3.8 GW, while the electrification of ports will account for around 1.2 GW.
Distribution networks will also need to accommodate an extra 5.3 GW. The draft royal decree proposes more than 400 connection extensions, ranging from new transmission users to grid expansions for rail and maritime operators.
What This Means for Energy Storage
For the commercial and industrial (C&I) energy storage sector, Spain’s grid plan signals a major opportunity. With developers requesting more than 100 GW of storage capacity through 2030 – five times the official forecast – battery energy storage systems (BESS) will be indispensable for balancing intermittent solar and wind generation.
C&I ESS projects, in particular, could help alleviate grid congestion by storing electricity locally and providing flexibility services that reduce strain on transmission lines. For energy-intensive industries facing soaring demand, deploying on-site storage offers both security of supply and a way to optimise energy costs.
The government’s new emphasis on using existing infrastructure “wherever cheaper” also aligns with storage: strategically placed batteries can defer or even replace costly grid reinforcements. European audiences will recognise parallels here with Germany’s and Italy’s growing reliance on distributed energy storage to stabilise local networks.
A Turning Point for Spain’s Power System
“This is a new approach to a historic opportunity,” said Secretary of State for Energy Joan Groizard, framing the plan as more than just a technical upgrade. Indeed, it represents a rethinking of how Spain’s power system should evolve in an era where renewable generation is abundant but unevenly distributed, and where demand is shifting towards electrified industries and digital infrastructure.
Spain’s challenge is not unique. Across Europe, countries are wrestling with grid constraints that risk slowing down the energy transition. Yet Spain’s willingness to commit significant public and private capital to transmission and distribution – while explicitly recognising the role of storage and flexibility – sets a precedent.
If executed effectively, the plan could transform Spain from a solar-rich periphery into a central player in Europe’s decarbonised power landscape. For investors, developers, and technology providers in the C&I ESS and BESS markets, this may be the clearest signal yet that Spain is ready to open its grid to the future.
