The Government of Spain has today taken a step towards consolidating a circular economy in the energy sector with the publication, in the Official State Gazette (BOE), of Order TED/542/2025. This regulation establishes the framework for the Renocicla Programme, a key instrument of the Ministry for the Ecological Transition and the Demographic Challenge to finance projects focused on the recycling, reuse, and ecodesign of renewable energy equipment, such as wind turbines, photovoltaic modules, and batteries.

Spain is strategically positioned to become a European leader in the recycling of renewable energy components, not only due to its industrial and technological capacity but also because of the accumulated and growing volume of wind (15 GW, according to AEE) and solar installations that will reach the end of their operational life in the coming years.

This presents an opportunity to develop a specialised recycling industry that can reduce dependency on imported raw materials and create jobs in sectors linked to maintenance, refurbishment, and the recovery of equipment.

Previous editions of the Renocicla Programme have funded various projects notable for their innovation and contribution to the circular economy. For instance, Iberdrola received €22.7 million to repower two wind farms in Albacete, reducing the number of turbines from 139 to 22, thereby improving energy efficiency and reducing environmental impact.
Additionally, six wind blade recycling projects have been financed with a total investment of €14 million, aiming to recover at least 50% of waste by weight and convert it into secondary raw materials.

This initiative forms part of the Recovery, Transformation and Resilience Plan (PRTR), under Component 12 (“Industrial Policy Spain 2030”), Investment 5 (C12.I5), and is financed through the Next Generation EU instrument. The Institute for the Diversification and Saving of Energy (IDAE) will manage the aid.

The programme aims to promote more sustainable production models through the efficient management of waste generated by renewable equipment at the end of its useful life. Funded actions will include:

• Recycling and recovery of materials.
• Reuse and second life of components and entire systems.
• Ecodesign focused on facilitating disassembly, maintenance, or refurbishment.
• Recovery of critical raw materials, such as carbon fibre or rare earth elements used in renewable technologies.

The initial budget allocated to the programme is €147.8 million, to be distributed over the implementation period up to 31 December 2028.
Grants will be awarded through a competitive process, and beneficiaries may receive non-repayable funding, with the possibility of advance payments if appropriate guarantees are provided.

Applications may be submitted by legal entities legally established in the European Union, involved in activities related to the manufacturing, installation, or management of renewable energy equipment. Applicants must not be in financial difficulty and must comply with all fiscal, labour, and environmental obligations established by Spanish and EU legislation.

This aid will be compatible with other public incentives, provided that the total project cost is not exceeded. Furthermore, all funded activities must adhere to the principles of:

• DNSH (Do No Significant Harm) – i.e., avoiding significant harm to the environment.
• Traceability and transparency in the execution and justification of funds.
• Fraud prevention, including corruption and conflicts of interest.
  

Projects must also comply with the provisions of Regulation (EU) 651/2014, Articles 25 and 47, concerning aid for research and development and investments in resource efficiency.

The programme is expected not only to reduce industrial waste but also to generate skilled employment, strengthen the domestic renewable energy value chain, and decrease dependence on strategic external materials.

Specific calls for grant applications will be published shortly on the IDAE electronic headquarters. In the meantime, interested parties can consult the full terms of the Order on the official BOE portal or at www.idae.es.