Spanish Government Plans Subsidies for Renewable Energy Equipment Manufacturing, Seeking Feedback by September 25

en.Wedoany.com Reported - Spain's Ministry for the Ecological Transition and the Demographic Challenge (MITECO) is preparing a new subsidy scheme to support the manufacturing of equipment and components in Spain for batteries, grid equipment, wind turbines, renewable hydrogen, photovoltaic power installations, and heat pumps, aiming to expand domestic industrial capacity aligned with the deployment of the energy transition.

The Ministry has now launched a public consultation on the regulatory details of the scheme, during which interested parties may submit proposals on the design of the subsidies. It should be noted that this is not yet a formal call for projects, and the specific funding amounts available to companies have not been announced; according to the notice published by the Ministry, feedback may be submitted until September 25.

This new mechanism focuses primarily on the processing and transformation capacity for equipment and critical raw materials required for net-zero emission technologies, with the goal of modernizing Spain's industrial system and enhancing its competitiveness while advancing decarbonization. MITECO acknowledges that, although Spain has an export-oriented industry in clean technologies, it remains highly dependent on third-party markets for certain components and stages of the supply chain—a vulnerability that exists across Europe as well.

According to MITECO data, Spain is capable of manufacturing more than 60% of the components in the photovoltaic value chain and nearly 100% of those in the wind power value chain. This production base is precisely why the government has decided to consolidate domestic manufacturing and address gaps in the supply chain. The related deployment aims to synchronize the expansion of renewable energy with new domestic production capacity, thereby strengthening energy security and reducing the risk of external supply constraints in key areas of electrification and decarbonization.

In terms of funding arrangements, the aforementioned subsidies will be managed by the Institute for Energy Diversification and Saving (IDAE), which falls under MITECO, and will be awarded through a competitive selection process—that is, projects will be compared and grants awarded on a merit basis according to the criteria established under the scheme. The new programme extends the support framework of RENOVAL; the two previous calls under RENOVAL were funded by NextGenerationEU resources within the framework of Spain's Recovery, Transformation and Resilience Plan (Plan de Recuperación, Transformación y Resiliencia), while this new programme will draw on the European Regional Development Fund (ERDF) for the 2021–2027 period.

The policy direction is aligned with the objectives of the European Commission's Clean Industrial Deal (Pacto por una Industria Limpia) and the Strategic Technologies for Europe Platform (STEP), which together constitute the EU's policy framework for developing industrial capacity related to the energy transition.