Spain advances pumped‑hydro storage and fuel reform to meet 2035 renewable targets

Ernst & Young warned that Spain’s rapid expansion of wind and solar capacity toward its 2035 renewable goal will require a balanced storage mix of pumped‑hydro plants and batteries. The firm notes that pumped‑hydro, with 5.5 GW currently operating, is largely European‑sourced (85 %), while battery technology is 91 % dependent on non‑EU manufacturers, creating strategic risks. Storage growth lags behind generation, with only 220 MW of batteries in service against more than 28 GW of approved projects.

On 21 July, the Spanish Council of Ministers approved Real Decreto 611/2026, a framework to cut transport emissions by 2040. The decree obliges fuel producers and distributors to increase the renewable share of gasoline, diesel, bio‑fuels, electricity and hydrogen, but does not set a deadline for removing gasoline stations or banning combustion‑engine cars. Drivers can continue using their vehicles while the fuel mix gradually changes, providing certainty for the industry and aligning with EU climate objectives.