Spain secures European approval for a 1.1 billion euro direct aid package for renewables
European Commission approval enables Spain to allocate 1.1 billion euros in direct support to the renewable sector. The aid targets producers of batteries, solar panels, wind turbines, heat pumps, and electrolyzers, along with essential raw materials used in their manufacture. Individual grants may reach up to 350 million euros per company as part of a crisis response linked to the ongoing situation in Ukraine and financed through New Generation funds.
One quarter of European funds remains unallocated, Spain positions for growth
In June, the government approved an update to the Recovery Plan, introducing new investments and reforms aimed at attracting more European financing to Spain. A total of 94.3 billion euros will be added to European funds by 2026, with 70.0 billion euros from the initial stage already set aside. The amendment designates 1.1 billion euros for the renewable value chain as a way to compensate for market gaps and to back strategic technologies. Brussels describes the goal as creating a robust ecosystem to accelerate investments in the value chain necessary for manufacturing these products. The energy minister noted the approval in a speech at the National Renewable Energy Congress hosted by APPA Renewable Energy Resources, stressing the need to strengthen the continent Sergio energy and industrial autonomy and to reinforce strategic capacity across Europe.
Brussels grants Spain flexibility to extend the use of 5 billion euros in European funds beyond the 2026 limit
The plan also allows the extension of used funds beyond the year 2026, offering Spain room to manage up to five billion euros in European support over a longer horizon. The framework sets conditions that aim to ensure responsible use of funds while promoting sustainable energy projects. Spain will require applicants to seek support before starting work, with aid typically not exceeding 15 percent of eligible costs or a maximum of 150 million euros per company.
In certain regions, as outlined in the 2022 2027 regional aid map, higher aid rates between 20 and 35 percent may apply, raising the total potential support to between 200 and 350 million euros. The higher rates can add an extra 20 percent for the smallest companies and 10 percent for mid sized firms. In every case, beneficiaries commit to continuing investments in the relevant area for at least five years. For small and medium sized enterprises, the counting period begins after three years, effectively starting at the end of the initial investment.