Spain – The Ministry for Ecological Transition and the Demographic Challenge (MITECO) launches €355 million in aid to strengthen the industrial value chain linked to the energy transition – hydrogen
This call for proposals will encourage the manufacture of equipment and components for photovoltaic, solar thermal, wind, geothermal, hydrogen or energy efficiency technologies, among others, expanding the scope compared to the previous call for proposals.
The RENOVAL 2 program will contribute to ensuring energy security, increasing competitiveness and decarbonizing industry, in line with the European Commission’s Clean Industry Pact.
Spain manufactures virtually all the components of a wind farm and more than 60% of photovoltaic installations, and is an exporter of net-zero emission energy technologies.
The Ministry for Ecological Transition and the Demographic Challenge (MITECO), through the Institute for Energy Diversification and Saving (IDAE), has approved a second call for aid aimed at strengthening the industrial value chain of clean technologies (RENOVAL 2) endowed with 355 million euros, which can be consulted here .
In line with the principles of the Clean Industry Pact promoted by the European Commission, this program will give a new boost to the manufacture in Spain of clean technology equipment and its key components, including photovoltaics, solar thermal, wind, hydraulic, geothermal, hydrogen, biogas, heat pumps and technologies related to energy efficiency, significantly expanding the scope compared to the previous call.
This IDAE incentive program, funded by NextGenEU from the Recovery, Transformation and Resilience Plan (PRTR), will help strengthen the entire innovative and knowledge-based value chain surrounding renewable energies in Spain; both in mature technologies, such as solar photovoltaics and wind power, and in emerging technologies, with renewable hydrogen at the forefront. Likewise, it will enable the development of new technological and industrial capabilities to guarantee energy security, increase our competitiveness, and decarbonize industry.
The IDAE will be in charge of managing these grants, which will be awarded on a competitive basis and will be implemented as a subsidy to be received by the beneficiary, on a definitive basis, once the eligible expenses incurred are accredited and the execution of the project is verified.
The creation of industrial facilities for the manufacture of clean technology equipment and its essential components will be eligible for support, as will capacity expansions at existing facilities through the implementation of new production lines. Actions to convert existing lines to manufacture key equipment and components not previously in production at the plant will also be eligible for this program.
Two incentive programs are established. Incentive program 1, with a budget of 25 million euros, will be allocated to projects with eligible budgets between one million and 30 million euros. Program 2, with 330 million euros, will be reserved for projects with eligible budgets exceeding 30 million euros.
In general terms, the aid intensity will be 15% of eligible costs and cannot exceed €150 million per project. However, this intensity may be increased to 20% and €200 million in areas designated as ‘c’ in the European Union, and up to 35% and €350 million in ‘a’ areas. Furthermore, for projects undertaken by small businesses, the aid intensity may be increased by 20%, and for medium-sized businesses, by 10%.
Beneficiaries may request an advance payment, which will be considered a payment on account and will not exceed the total amount of the grant awarded. Investment projects may also receive funding from other European Union programs and instruments, provided that such funding does not cover the same costs. The maximum period for carrying out the activities covered by the grant will be 48 months from the date of the resolution.
In addition to economic criteria, projects that include strategic, social and environmental criteria such as the reduction of vulnerabilities, job creation or the reduction of the carbon footprint from transport, among others, will be positively valued.
ALL TYPES OF CLEAN TECHNOLOGIES
In line with section 6 of the Clean Industry Pact State Aid Framework (CISAF), the manufacture of final products and/or specific components linked to clean technologies will be eligible for subsidies, falling within the following lines of action:
- Solar technologies : photovoltaic, thermal, concentrating and thermal photovoltaic collectors.
- Onshore wind and marine renewable energy technologies : onshore and marine wind turbines and tidal and wave energy technologies.
- Battery and energy storage technologies : batteries (excluding electric vehicle batteries), electrochemical, gravitational, thermal and compressed air or liquid air energy storage and flywheel storage.
- Heat pumps and geothermal energy technologies.
- Hydrogen technologies : electrolyzers, fuel cells, and other hydrogen technologies.
- Sustainable biogas and biomethane technologies .
- Electricity grid technologies : land and marine substations, electricity transmission and distribution towers, cables, lines and accessories for electricity transmission and distribution, power transformers, electric charging technologies for transport and technologies for digitizing the grid and other electricity grid technologies.
- Hydroelectric technologies : hydraulic turbines.
- Other renewable energy technologies : osmotic energy technologies, ambient energy and heat pumps, biomass, landfill gas or sewage treatment plant gas technologies.
- Energy efficiency technologies related to the energy system: energy management systems or building automation, heating and cooling distribution system piping, etc.
- Transformative industrial technologies for decarbonization : electric arc furnaces, direct iron reduction reactors prepared for hydrogen, industrial boilers, etc.
A SELF-SUFFICIENT ENERGY SYSTEM
Europe is currently a net importer of net-zero emission energy technologies. These technologies are at the heart of significant geostrategic interests and the global technology race. In this context, countries want to ensure their energy supply comes from the most advanced energy production technologies and drive the clean energy transition. Other regions of the world are making substantial investments and deploying support measures to renew and strengthen their production capacities.
Spain not only has renewable energy resources but also a leading industrial ecosystem around the renewable energy value chain, both in Europe and globally. We can already manufacture more than 60% of the solar energy value chain and almost 100% of the wind energy value chain in our country, and we are exporters of these technologies. However, there are certain components or elements of this value chain where both Spain and Europe are highly dependent on third-party markets. Hence the importance of supporting not only the deployment of the energy transition but also new industrial capabilities, which is the objective of this aid program.
Spain must seize this opportunity and strengthen the value chain of clean technology components to guarantee energy security, increase our competitiveness, and decarbonize industry. This aligns with the European Union’s core principles of digital and environmental transformation, the RepowerEU Plan, and the Net-Zero Industrial Act.
CONTINUATION OF RENOVAL
This new program continues the MITECO call for aid for projects aimed at strengthening the renewable value chain (RENOVAL), which has recently awarded 296 million to 33 projects for the manufacture of equipment and components essential for the technological and industrial development of renewable energies in Spain.
These renewable value chain calls are framed within Component 31, “REPowerEU Chapter”, of the PRTR, and will contribute to the objectives associated with it, in accordance with the regulations governing the Recovery and Resilience Mechanism (RRM) at the national and European level.
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Spain – The Ministry for Ecological Transition and the Demographic Challenge (MITECO) launches €355 million in aid to strengthen the industrial value chain linked to the energy transition – hydrogen, source
