Spain has awarded $707.2 million to 173 wind and hydropower modernisation projects.

The programme is expected to mobilise about $4.33 billion in total investment.

More than half of the projects include storage, adding over 2 GWh to Spain’s electricity system.

Spain has awarded $707.2 million in grants to modernise ageing wind farms and small hydropower plants across the country.

The government increased the programme’s budget by 110% after receiving strong demand from renewable energy developers. The final allocation will support 173 projects through the REPOTEN 2 repowering programme.

Spain’s Institute for Energy Diversification and Saving, known as IDAE, managed the competitive funding process. It approved 81 wind repowering projects and 92 hydropower upgrades.

The selected hydropower facilities have generation capacities of up to 50 MW. Funding will support equipment upgrades, automation and environmental restoration.

Developer demand lifts available funding

Spain initially allocated about $337.4 million to REPOTEN 2 in December 2025. The Ministry for the Ecological Transition raised the funding line to approximately $591.6 million in May.

Following appeals and further consultation, IDAE increased the final award to $707.2 million.

The definitive allocation differs from the provisional selection published in May. That list included 80 wind repowering projects and 69 hydropower upgrades.

The grants are funded through Spain’s share of the European Union’s NextGenerationEU recovery programme. Authorities distributed the funding through competitive tenders.

REPOTEN 2 is expected to mobilise approximately $4.33 billion in total investment. That amounts to more than six dollars of investment for every dollar of public funding.

For policymakers, the programme connects economic recovery spending with energy security, grid resilience and infrastructure renewal.

Storage expands the programme’s grid value

The selected projects will modernise assets representing 2,433 MW of wind power and 1,091 MW of hydropower.

More than half of the projects will also include co-located energy storage. IDAE said 53% of the selected developments contain a storage component.

Together, these projects will add more than 2 GWh of storage capacity to Spain’s electricity system.

Storage will allow renewable facilities to respond more effectively to changing electricity demand. It can also support grid stability as Spain adds more variable wind and solar generation.

Wind projects account for approximately $637.1 million, or about 90% of the funding. Hydropower projects will receive around $70.1 million.

The funding structure reflects the larger scale and capital requirements of Spain’s wind repowering pipeline. However, the hydropower allocation also carries environmental and system benefits.

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Larger turbines replace ageing equipment

Developers will replace nearly 3,000 ageing wind turbines with fewer than 500 larger and more efficient machines.

The existing turbines have an average capacity of 790 kW. Their replacements will average 5 MW.

The new machines will produce more electricity while reducing the number of turbines operating at each site. This may lower maintenance requirements and reduce pressure to secure new development areas.

The replacement turbines will also be capable of operating in “grid-forming” mode. This technology allows renewable assets to provide voltage support and other services traditionally supplied by conventional power stations.

Such capabilities are becoming more important as electricity systems reduce their reliance on fossil fuel generation. Renewable projects must increasingly help maintain system stability during faults or fluctuations.

Hydropower funding links climate and nature

The hydropower projects include upgrades to generating equipment and automation systems. They also contain measures aimed at reducing environmental impacts.

Planned work includes fish passages, habitat restoration and measures to maintain ecological river flows. Some projects will also improve sediment transport around dams and generating facilities.

These requirements place biodiversity and water management alongside the programme’s energy and climate objectives.

Projects are spread across every Spanish region except the Balearic Islands. Galicia received the largest number of awards, followed by Castile and Leon, Castile-La Mancha, Andalusia and Aragon.

Projects must be completed by June 30, 2030. Extensions may be granted until December 31, 2030 under the programme’s rules.

For investors and energy companies, REPOTEN 2 creates a sizeable pipeline across engineering, construction, storage and grid technology. Spain’s approach may also offer a model for other European countries with ageing renewable fleets.

Repowering allows governments to increase clean electricity output from established sites. It can also reduce development risk while improving grid performance and extending the economic life of existing assets.

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