Spain unveils new plan to boost clean-tech supply chain

Spain has introduced a new incentive scheme aimed at strengthening its clean-tech supply chain, including PV manufacturing. This initiative comes as a welcome move, endorsed by the European Solar Manufacturing Council (ESMC) and following our continuous efforts with Spanish stakeholders to capitalize on opportunities presented by the Recovery and Resilience Facility in combination with the Temporary Crisis and Transition Framework.

Spain’s Vice-President of the Government and Minister for Ecological Transition and Demographic Challenge, Teresa Ribera, recently announced the plan for a first call, backed by a substantial €750 million allocation from the Recovery and Resilience Plan (RPP) in the form of direct grants. This strategic move underscores Spain’s commitment to strengthening its renewable energy and storage value chains.

The ministerial order lays down the regulatory framework for funding calls targeting projects that promote the circular economy and enhance the value chain of net-zero technologies. The explicit goal is to reinforce Spain’s and Europe’s strategic autonomy in the renewable energy and storage sectors and contribute to the reindustrialization of Spain. Notably, these aids are notified to the European Commission under the  Temporary Crisis and Transition Framework, a temporary relaxation of state aid rules to support specific industries — a measure strongly advocated for by ESMC.

For the past two years, ESMC has been advocating for leveraging the opportunities presented by the Recovery and Resilience Facility in conjunction with the TCTF framework. Spain’s allocation of €1 billion dedicated to net-zero industries specifically earmarked for manufacturing out of a €3 billion overall budget for renewables signaled a step in the right direction already in November last year. ESMC representatives have actively engaged with the Institute for Diversification and Energy Saving (IDAE) to highlight these opportunities.

The initiative is currently undergoing a public consultation period, scheduled from February 26^th to March 15^th, 2024. At ESMC, we view this development as a significant opportunity and will closely monitor its progress. We remain committed to keeping ourselves and our members informed about the potential it holds for the industry’s growth and advancement. This concise support announcement encapsulates Spain’s approach to fostering clean-tech innovation and industry resilience, which we at ESMC applaud.

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