Spain's 355 Million Euro Investment in Clean Technology Industrial Reinforcement
The Ministry for Ecological Transition and the Demographic Challenge has announced a new public aid line totaling 355 million euros aimed at strengthening Spain's industrial value chain linked to energy transition initiatives.
Named RENOVAL 2, and managed by the Institute for Diversification and Saving of Energy, this program seeks to foster domestic manufacturing of clean energy technologies and critical components, thereby decreasing reliance on external sources and enhancing industry competitiveness.
Aligned with the European Unions Pact for a Clean Industry and funded by Next Generation EU recovery funds, the initiative extends beyond previous efforts to include established renewable technologies like solar photovoltaic and wind power as well as emerging sectors such as renewable hydrogen.
It also encompasses energy storage solutions, energy efficiency projects, and industrial decarbonization processes, aiming to establish a comprehensive industrial ecosystem capable of covering the entire value chain from manufacturing to plant reconversion.
According to the government, this approach aspires to create a more secure and self-sufficient energy system amidst a competitive international landscape marked by strategic geopolitical considerations and the technological race for net-zero emissions.
Spain already holds a prominent position in renewable manufacturing, producing nearly all wind turbine components and over 60% of solar photovoltaic supply chain elements, and actively exports clean energy technologies.
Nevertheless, the government recognizes persistent dependencies on key strategic components at both national and European levels, which justifies the investment in strengthening local industrial capacities.
The aid will be granted through a competitive process, converting into grants after verification of expenses and project execution. The support intensity is generally set at 15% of eligible costs, with potential increases based on company size and project location, especially in EU priority regions.
Funding can be advanced and combined with other European instruments, provided that the same costs are not double-financed.
Beyond economic factors, project evaluations will consider strategic, social, and environmental impacts, including employment creation, industrial vulnerability reduction, and carbon footprint mitigation linked to transportation. The maximum project execution period is 48 months from the date of grant approval.
This initiative continues the momentum of the initial RENOVAL program, which recently allocated nearly 296 million euros to 33 renewable energy industrial projects, reinforcing Spain's commitment to sustainable industrial growth.