The International Hydropower Association (IHA) has issued a four-point action plan calling on the Government of Spain to accelerate the deployment of pumped storage, warning that delays could lead to escalating energy waste and grid instability.

The association said that without immediate investment in long-duration energy storage, Spain risks undermining its recent progress in renewable energy.

Spain has doubled its wind and solar capacity since 2019, with renewables meeting 46% of electricity demand in the first half of 2025. Wholesale electricity prices have fallen to 32% below the EU average, but the system is facing increasing strain due to insufficient infrastructure to manage variable supply.

Renewable curtailment is rising rapidly and is expected to exceed 3 TWh in 2026, equivalent to the annual consumption of around 3 million households. At the same time, the April 2025 blackout exposed an over-reliance on gas-fired generation for system stability. Balancing costs subsequently rose to 57% of the final electricity price in May 2025, compared with a 14% annual average.

Eddie Rich, CEO of IHA, said: “Spain has the potential to be the global blueprint for a successful energy transition, but they must not waste the progress they’ve made. 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.”

The IHA’s action plan, endorsed by partners including Iberdrola, EDP, Andritz Hydro, GE Vernova, Voith Hydro and Mott MacDonald, outlines four policy priorities:

Pumped storage can provide between 8 and 50 hours of electricity storage and deliver key grid services, including frequency and voltage stability, inertia, and black start capability. It also offers a domestic energy solution that reduces reliance on imported fuels and supply chains.

The association added that expanding pumped storage could generate significant economic benefits, including job creation and increased energy independence.

“This plan is the best way to ensure the loss of clean energy in Spain,” added Rich. “Water, wind, and sun can get the job done, but only if we have the capacity to store the power we produce.”

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