The government is finalizing its proposal to update the National Integrated Energy and Climate Plan (PNIEC), a green roadmap aimed at accelerating Spain’s energy transition and raising 2030 targets for large-scale clean energy deployment and emissions reductions. The plan, supported by European funds, contemplates 36.6 billion euros from the Recovery and Resilience framework in addition to resources already allocated in the plan annex under the Recovery, Transformation and Resilience Plan. This funding package is designed to support systemic reforms and investments that empower a faster shift to a low‑carbon economy.
Current authorities intend to submit a draft to the European Commission this month to expand the green megaplan. The final version, however, will be crafted by the government that emerges from the January 23 general election, with approval required by June 30, 2024. Independent surveys anticipate a further influx of resources to bolster decarbonization targets and strengthen the economy through green investments and job creation.
The Recovery Plan appendix includes a second tranche of 94.3 billion euros in new non-repayable grants (10.3) and loans (84.0) to be repaid, added to the 70.0 billion euros of EU subsidies already granted to Spain in the first phase. Altogether, around 160.0 billion euros will be available to finance investments and structural reforms through 2026. The government aims to play a clear role in guiding the ecological transition through this enhanced funding, as described in the supplementary material sent to Brussels. [citation: Recovery Plan documents, European Commission attribution]
The proposal to broaden the Recovery Plan envisions more than 36.6 billion euros in additional investments and reforms tied to decarbonization and green energy. An extra 10.064 billion euros is earmarked for strategic projects under the PERTE green program, with a further 6.564 billion allocated to financing lines backed by public support from the ICO and tax incentives for green investments. [citation: PERTE program details, government statements attribution]
make PERTE fat
The administration has signaled to Brussels its intention to strengthen PERTE allocations toward renewable energy, renewable hydrogen, and storage (nearly 5.5 billion more), electric and connected vehicles (about 1.25 billion more), decarbonization of industry (2.72 billion more), and circular economy initiatives (0.6 billion more). In total, the green PERTE framework is expected to reach a combined budget of roughly 20.2 billion euros with the newly approved allocations coming into effect. [citation: PERTE funding overview attribution]
Additionally, the government proposed a 15.5 billion euro ICO guarantee line to expand financing for the green transition, along with a 2.25 billion euro fund to support tax incentives that encourage household investments in green technologies. [citation: Financing instruments attribution]
In the supplementary document presented to Brussels, various investment programs and reforms linked to advancing the green transition are outlined across multiple components of the Improvement Plan. The measures cover deployment and integration of renewable energy, self-consumption and storage empowerment, electricity digitization, a roadmap for green hydrogen, protections for vulnerable consumers (including a newly regulated electricity tariff designed to reduce exposure to daily market fluctuations), and expanded programs for a fair transition. [citation: Improvement Plan sections attribution]
new NECP
Spain already has a green transition roadmap with interim targets for 2030 under the National Integrated Energy and Climate Plan, aiming to increase the share of renewables and reach full decarbonization and an emissions-free economy by 2050, as stated in climate legislation. The Recovery Plan’s funding mandate should act as a strong impetus for this decarbonization path. The central government plans to accelerate EU goals on renewable energy, green hydrogen, and biomethane distribution, while continuing to define the future role of fossil fuels and nuclear energy in the energy mix. [citation: national plan and climate law attribution]
The executive intends to send a new PNIEC version to Brussels by June 30 after launching a public consultation process. The European Commission is expected to approve the final text by July 2024. The current PNIEC envisions about 60,000 MW of new renewable capacity by 2030, with targets set for the electricity mix, renewable gases such as hydrogen and biomethane, and storage capacity. While ambitious, the plan maintains practical goals aligned with Spain’s energy transition timeline. [citation: PNIEC targets attribution]