Spain’s MITECO unveils €2 billion funding package to strengthen industrial value chains and accelerate the national energy transition
Funding spans manufacturing, renewables integration, electric mobility, hydrogen, storage, and port infrastructure for offshore wind
Calls will include dedicated support for repowering wind, pumped hydro, and innovative solutions like agrivoltaics and floating PV, and integration of storage
The Spanish Ministry for Ecological Transition and the Demographic Challenge (MITECO) has announced a new funding of approximately €2 billion. It aims to strengthen the country’s industrial value chain and accelerate its energy transition.
Spain’s Vice President, Sara Aagesen, who also leads MITECO as the minister in charge, said that these funds will be available to projects that contribute to boosting the country’s competitiveness. The focus will be on 4 key areas: industrial value chain, integration of renewable solutions into the economic fabric, electric mobility, and innovative thermal solutions in the industrial and residential sectors.
Beneficiary projects will get an extended deadline for implementation beyond August 31, 2026, which is the cutoff date for validating aid under Spain’s Recovery, Transformation and Resilience Plan (RTRF). The new package is aligned with the European framework for state aid for clean industry, under which aid can be allocated until December 31, 2028, and distributed even beyond that date.
Spain had previously awarded nearly €300 million for 33 value chain projects across 12 autonomous communities for solar PV, wind, heat pumps, electrolyzers, and related components, including for SUNWAFE’s plans to manufacture silicon ingots and wafers (see Spain Commits €400M To Renewable Energy Equipment, Recycling).
Under the new package, the ministry will offer €300 million to €350 million for the manufacturing of the above components, along with those related to energy efficiency, electricity grid, and industrial technologies such as electric arc furnaces. Another €200 million will be available for adapting port infrastructure to develop renewable energy technologies such as offshore wind power, while €300 million to €450 million will be reserved for renewable hydrogen projects.
For the integration of renewables, the government will launch a call focused on wind power, under the National Roadmap for Boosting Repowering, which will also promote hybridization with storage. It has been allocated a budget of €300 million to €350 million. An additional €100 million is reserved for pumped hydroelectric plants to promote storage.
A new call for proposals will be issued for the integration of innovative renewables with storage, such as agrivoltaics and floating PV, with a budget of €150 million to €200 million.
“In short, this package will allow us to advance the model that has enabled us to become a benchmark for economic and environmental progress, industrial modernization, and the fight against climate change,” stated Aagesen.
Spain recently issued a Royal Decree to boost energy storage in the country in order to achieve 22.5 GW capacity by 2030 (see Spanish Decree Boosts Energy Storage To Achieve 22.5 GW Target).
