The Ministry for Ecological Transition and the Demographic Challenge (MITECO) has announced a new €2 billion (~$2.3 billion) aid package aimed at strengthening the industrial value chain and promoting the energy transition.

Eligible projects completed beyond August 31, 2026, will also be eligible to receive aid.

Vice President of the Government and Minister for Ecological Transition and the Demographic Challenge, Sara Aagesen, said that the new aid package will boost competitiveness in four key areas: the industrial value chain, the integration of renewable energy solutions into the economic fabric, a renewed push for electric mobility, and innovative thermal solutions in the industrial and residential sectors.

The new package is aligned with Europe’s Clean Industrial Deal State Aid Framework, which allows aid to be allocated until December 31, 2028, and can be distributed beyond that date in some cases.

Under the new funding program, €300 million (~$347.9 million) to €350 million (~$405.9 million) has been allocated for the three value chain projects across 12 autonomous communities, focusing on solar, wind, heat pumps, electrolyzers, and related components.

It will also cover projects related to energy efficiency, the electrical grid, and transformative industrial technologies.

Under initiatives such as the future National Roadmap for Boosting Repowering, a second call will be announced, focusing on wind power with a budget of €300 million (~$347.9 million) to €350 million (~$405.9 million). It will aim to promote the hybridization of facilities with storage.

The new funding also covers projects aimed at adapting port infrastructure to develop renewable technologies such as offshore wind power, with an allocation of €200 million (~$231.9 million).

The Ministry will continue to support green hydroelectric projects, with more than €3 billion (~$3.5 billion) already allocated through various support programs. The new aid program will provide funding, with an allocated budget of €300 million (~$347.9 million) to €450 million (~$521.8 million) for initial investment in projects and hydrogen production.

It has also allocated €100 million (~$115.9 million) for pumped hydro storage projects.

Following the allocation of €148.5 million (~$172 million) in July, an additional €150 million (~$173.9 million) to €200 million (~$231.9 million) will be allocated for innovative renewable projects with storage, such as agriculture, floating solar projects, and infrastructure integration projects.

Boosting electric mobility, the Spanish Ministry has announced a fund allocation of between €150 million (~$173.9 million) and €200 million (~$231.9 million) to install charging points along major roads. The government has also announced the consolidation of electrified delivery fleets, introducing a new Moves Fleets program that will receive €50 million (~$57.9 million).

In October this year, Spain’s EPE Institute for Energy Diversification and Saving approved the expansion of the budget allocation for non-repayable grants to support 2,416.54 MW of energy storage projects by 20% from €699.75 million (~$813.7 million) to €839.71 million (~$975.76 million).

According to the Spanish Solar Photovoltaic Association’s annual report, the country’s total installed solar capacity reached 40,294 MW at the end of 2024. In 2024, Spain added 7.2 GW of new solar capacity, making it the second-largest solar market in Europe, after Germany.