The Institute for the Diversification and Saving of Energy (IDAE) will allocate €181 million (~$214 million) to support renewable energy projects in seven autonomous communities of Spain.
The allocation is part of a €316 million (~$375 million) package that the ministry for ecological transition (MITECO) will infuse into the domestic renewable energy sector.
The regions of Andalusia, Principality of Asturias, Castila-La Mancha, Catalonia, Extremadura, Madrid, and Murcia will receive the initial fund allocation. These regions will mobilize an additional €551 million (~$652 million) through private investment.
In total, funding of more than €700 million (~$829 million) will be activated to attain the European Union’s objective of economic recovery in the face of COVID-19, along with energy transition and digitization.
Recently, France also announced its plans to invest €100 billion (~$118.4 billion) to retrieve the economy from the damage caused by the pandemic. As part of its ‘France Relance’ (France Relaunching) plan, the government has allocated €30 billion (~$35.51 billion) for the green energy sector.
Under Spain’s new plan, a capacity increase of 344.2 MW in renewable electricity generation and 483 MW in thermal generation initiatives are expected. These investments are expected to create jobs and offset 712,000 tons of carbon dioxide equivalent.
One set of funds would finance the construction of solar, wind, biomass, gas, and green hydrogen projects. The second set of funds would be used to generate thermal energy through renewables, like geothermal, aerothermal, and renewable gas.
The funding is expected to support renewable thermal use in the agricultural-food sector and the industrial and service sectors.
Renewable electricity generation will receive €80.2 million (~$95 million) in support, while thermal installations would rope in another €101 million (~$119 million).
Image credit: By Sawu12 – Own work, Public Domain
Rahul is a staff reporter at Mercom India. Before entering the world of renewables, Rahul was head of the Gujarat bureau for The Quint. He has also worked for DNA Ahmedabad and Ahmedabad Mirror. Hailing from a banking and finance background, Rahul has also worked for JP Morgan Chase and State Bank of India. More articles from Rahul Nair.