Valencian Innovation Agencies Under Review: Restructuring and Energy Projects

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By the end of the year, a deadline set by the Ministry of Innovation, Industry, Trade and Tourism directs the restructuring of both the Valencian Innovation Agency (AVI) and the Valencian Institute for Economic Development and Innovation (Ivace). Valencia’s management aims to prevent overlap between these bodies and to decide whether AVI will continue in its current form or be absorbed into department structures. A mechanism is also planned to ensure fair and proportional distribution of aid, especially for Alicante, which has often been left in the background.

This move represents one of the previous government’s bold bets to boost innovation across the Valencian Community. Now, under a new administration led by Carlos Mazón, the future of AVI—at least with its own standalone structure—remains uncertain. The government intends to streamline Generalitat operations, simplify administration, and curb expenditures. No final decision has been announced, as officials assess the department’s functions and the impact of potential actions. Still, the ministry has stressed that this process must move quickly.

Any reorganization affecting AVI would also influence Ivace, given Ivace’s role in innovation. Department sources say the goal is to eliminate duplicated functions, improve efficiency, and provide companies with a single channel to express their needs. Another objective is to strengthen connections and synergy among departments, whether Ivace operates as an independent company or becomes integrated into the department’s framework.

For now, officials indicate that no postponement beyond this year will occur and that all options remain on the table. The timeline for implementing any decision will depend on the complexity of the changes and the resources required to carry them out.

Ivace allocated 5.3 million to promote energy efficiency in the sector

The lack of a clear plan is reflected in the management chart for both organizations, signaling a temporary state. In AVI, Mazón accepted last Friday the resignation of Andrés García Reche, its chief since its founding in 2017, with duties temporarily taken on by the secretary general, Olivia Star. Ivace currently lacks a confirmed successor to the previous managing director, Julia Company, so day-to-day operations report directly to the Department of Innovation, Industry, Trade and Tourism, led by Nuria Montes. Appointments will follow a formal direction decision, with candidate profiles requested from the department.

Among the issues to be clarified in the AVI restructuring is the methodology used to distribute aid, a point of contention in the past. Although the official headquarters were in Alicante while operations occurred in Valencia, the province has repeatedly faced criticism. During a prior administration, a motion criticized perceived subsidies discrimination, and calls were made for additional funds to support companies, universities, research centers, associations, and local groups that were overlooked because regional corrective indices were not applied. In response, the Botànic framework increased the state’s allocations by 16 percent in the 2022 call, yet only a portion reached the intended beneficiaries. The aim now is to establish a fair and proportionate distribution mechanism.

Another key priority is advancing photovoltaic projects. The Department of Innovation, Industry, Trade and Tourism seeks to unlock 350 solar plant projects that have faced three years of delays, 150 of them in Alicante. The department will speed up decisions to prevent economic losses by January 25, when permit guarantees and electrical connection rights could lapse.

The recent appointment of Manuel Argüelles as General Director of Energy and Mining is viewed as a turning point, given his experience as an industry interlocutor. The ministry notes that concrete guidelines exist to accelerate procedures, safeguarding investments of around 7.5 billion euros and about 6,000 jobs at risk.

The regional department has reaffirmed its commitment to abolish the tourist tax before year-end, aligning with promises already made.

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