Spain to allocate EUR 2.3bn for green H2, eco transition programmes

Spanish Prime Minister Pedro Sanchez on Wednesday announced his government’s plan to launch four new subsidy programmes worth more than EUR 2.3 billion (USD 2.5bn) to accelerate Spain’s transition to renewable energy and green hydrogen.

These programmes will focus on areas such as green hydrogen, the renewable energy value chain, new energy communities, and support for renewables in agriculture, infrastructure, and villages throughout Spain, Sanchez said in a speech in the lower house.

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The government will get the programmes off the ground in the coming days, Sanchez added.

The funding for the programmes will come from the recovery and resilience facility. The Institute for the Diversification and Saving of Energy (IDAE), which is an agency of the Spanish ministry for the ecological transition, will manage the allocations, media in Spain has reported.

About EUR 1.2 billion will be dedicated to green hydrogen production and consumption projects in green hydrogen valley and clusters, according to media reports, which cite sources from the ministry for the ecological transition.

Another EUR 750 million will be allocated to the renewables value chain, with the aim of developing a new industry for equipment and components and building Spain’s industrial capacity in solar and wind energy, heat pumps, batteries and electrolysers.

Additionally, EUR 120 million will be set aside for unique pilot projects in energy communities, while the remaining EUR 250 million will support innovative renewable energy and storage projects and the installation of renewable thermal systems, agrivoltaics, collective self-consumption and heat pumps, the media said.

(EUR 1.0 = USD 1.089)