- The IDAE has received 56 applications seeking state subsidy for solar installations in Balearic Islands under SOLBAL program
- It represents 335 MW of total capacity which is higher than 240 MW originally offered by the state
- Solar installations less than 10 MW capacity will be eligible for aid covering up to 30% of project cost, and those with more than 10 MW capacity can expect up to 20% of project cost to be covered by the subsidy
- List of finally approved projects will be announced post summer and these will be expected to be completed by 2022
The Institute for Diversification and Saving of Energy (IDAE) of the Spanish Ministry of Energy, Tourism and Digital Agenda has received 56 proposals in response to the SOLBAL program which offers financial support for solar installations in the Balearic Islands. Solar investors are looking for support for at total of 335 MW.
The SOLBAL program aims to promote sustainable energy strategies on Spain’s Balearic and Canary Islands in collaboration with regional and island governments to help them bring down the cost of energy.
Originally, the Spanish government had announced a budget of €40 million ($44 million) for 240 MW of new capacity to be established under SOLBAL through program manager IDAE. It expects 335 MW of solar capacity to generate around €300 million ($331 million) as investment mobilized through public and private resources.
Most offers received are for solar projects in Mallorca (47), followed by Menorca (6), Ibiza (2) and Formentera (1). If approved, these will be the first solar parks on the island of Ibiza.
Small solar parks with less than 10 MW capacity will be eligible for financial aid to cover up to 30% of the project cost; projects larger than 10 MW can expect up to 20% in state aid. They can take the incentives in advance or after project execution.
The Balearic Islands have a total of 38 solar PV parks of which 35 are located in Mallorca, 2 in Menroca and 1 in Formentera.
The final winners will be announced after the summer. They will have to complete their projects before the end of 2022.
The Parliament of Balearic Islands approved its Climate Change and Energy Transition Law in February 2019, setting the Mediterranean islands in the direction of achieving 100% renewable energy by 2050 (see Balearic Islands Aim For 100% RE By 2050).
In April 2019, IDAE and the Tenerife Island Council signed an action protocol to conduct a feasibility study for a 350 MW solar PV plant on the Spanish island of Tenerife with 1 GWh of lithium battery energy storage (see 350 MW/1GWh Solar & Storage Planned For Tenerife).