- MITECO has announced €750 million in incentives for clean energy manufacturing in Spain
- It will support local production of renewable energy technologies and their respective essential components, including solar panels
- The government is also seeking public consultation on draft regulatory mechanism to offer incentives
The Spanish Ministry for the Ecological Transition and the Demographic Challenge (MITECO) has proposed to offer over €750 million ($812 million) in subsidies on renewable energy and storage manufacturing initiatives in the country.
With funding coming from the Recovery, Transformation and Resilience Plan (PRTR), it is aimed at encouraging the production of essential equipment and components in the renewable energy value chain. These include 5 domains of solar panels, batteries, wind turbines, heat pumps and electrolyzers, and their respective essential components.
It will support projects that propose to establish new industrial establishments for manufacturing and also expansion of currently operational facilities with new production lines.
Referring to the concentration of global solar PV supply chain in non-European Union (EU) nations, MITECO says net-zero energy technologies are at the center of important geostrategic interests and the global technology race.
It adds, “Other regions of the world are making large investments and deploying support measures to renew and strengthen their production capacities, and neither the EU nor Spain can be left behind.”
“We consider that it is not only enough to change the color of the molecules or electrons,” said the country’s Vice President and MITECO boss Teresa Ribera. “We want capital goods to be produced in Spain.”
State aid under the plan will be awarded by the Institute for Energy Diversification and Saving (IDAE) under a competitive solicitation process.
The ministry has also invited public consultation of a draft order that lays down regulatory bases to offer incentives.
Announced on February 23, 2024, proposals will be accepted till March 15, 2024. Details are available on MITECO’s website.
Spain will need to have a constant source of renewable energy equipment to meet its plans to achieve 81% share of renewables in its electricity mix by 2030, especially for solar since it seeks to have 76 GW come from solar (see Spain Raises Renewable Energy Ambition).
