For what you've described I can see 2 different entities needed, and I think you might be confusing them.
1) There is a spell entity that is in the user's inventory (or somewhere). This describes the information needed to create the spell (fire the projectile, etc...). It might also contain some sort of sprite component so it can be rendered in the UI. The SpellDescription component might include stuff like damage; or possibly that could be a separate Damage component? Your game's UI somehow uses this information to create a projectile entity when the player casts a spell.
2) So then there is the projectile entity. It will have position data. It might include some sort of Physics component that ties the entity to whatever physics library you're using and allows for collisions with other game entities. There might be a component that represents a particle system. And you need to include some component that indicates damage, damage type, etc... Your physics library will tell you when a collision has occured, and from this you need to be able to get back to the entity that contains the Physics component that collided. If the entity that collided is something that gives damage, then you'll take appropriate action:
3) You'll have code that applies damage to the character, and might possibly apply a timed effect/buff on the game character (which could be a new Component attached to the character entity, or possibly just changing some properties in a "health" component on the entity that was hit).
The above 3 bullet points are completely separate things that happen, and they aren't necessarily related. #2 isn't really even related to spells anymore. So something like this can be very flexible. For instance, maybe you have some volcano in your game that shoots fire projectiles randomly. In that case, only #2 and #3 are involved. Or maybe the character gets poisoned when they walk into a swamp. In that case, of the above list, only #3 is involved.
Note I am not sure I need the AoE and Timed components. Am I over engineering this?
It's hard to give advice on exactly which components are needed (and what data they contain) without knowing a lot more about your game. Think of all the different scenarios that can happen in your game (arrows being fired, spells being cast, things the environment does to people, buffs inventory items might give you, etc...) and try to find common patterns.
How do I spawn these spells? If I don't want coupling how do I add them to my "projectile list"?
Do you need a projectile list? What's a projectile? It's just a game entity that moves and has some handler for when it collides with something. At a minimum, it has position, physics information (which your physics system will use to move the position), and a reference to some handler that reacts to collisions. Those could be 3 separate components, possibly. Or perhaps the handler is part of the physics component.
So there is no projectile list. You just create an entity with the appropriate components and you're good to go.