Spain has launched two new funding calls totalling 405 million euros to advance its energy transition strategy, combining support for renewable energy deployment with measures to strengthen domestic industrial capacity in clean technologies.
The initiatives are managed by the Ministry for the Ecological Transition and the Demographic Challenge (MITECO) and the Institute for the Diversification and Saving of Energy (IDAE). Together, they aim to accelerate the replacement of fossil fuels while positioning Spain as a competitive manufacturing hub for the European clean-tech value chain.
€50m for renewable cogeneration and waste treatment
The first programme, RENOCogen, allocates 50 million euros to operators of cogeneration and waste-treatment plants seeking to replace fossil fuels—such as natural gas, diesel or fuel oil—with renewable energy sources.
Eligible technologies include biogas, biomass, aerothermal and geothermal energy, solar PV, wind power and hydropower with storage. Projects may receive up to 15 million euros, covering as much as 65% of total investment costs, with a minimum eligible investment of 50,000 euros.
Companies of any size, public entities and business consortia can apply. An advance payment of up to 80% of the approved grant is available, and projects must be located within 10 kilometres of the original installation.
Small and medium-sized enterprises (SMEs) benefit from additional incentives: +10% for small companies and +5% for medium-sized firms. Extra weighting is also granted to projects located in municipalities included in Spain’s Just Transition or Demographic Challenge strategies.
In its previous round, RENOCogen awarded 46.8 million euros to 16 projects, adding 142.5 MW of new capacity—mainly solar PV, alongside hybrid solutions combining biogas, biomass, aerothermal and geothermal technologies. Total investment mobilised reached 114.9 million euros, according to MITECO.
€355m to scale up clean-tech manufacturing in Spain
The second call, worth 355 million euros, targets industrial companies developing or expanding manufacturing facilities for clean-energy technologies. It is aligned with the European Union’s Clean Industrial Deal and the REPowerEU chapter of Spain’s Recovery and Resilience Plan.
The objective is to scale up domestic production of strategic components such as solar panels, wind turbines, electrolysers, batteries and heat pumps, reinforcing supply-chain resilience amid Europe’s intensifying competition for clean technologies.
Grants will cover up to 35% of eligible costs, depending on company size and project location. The standard cap is 150 million euros per project, which may increase to 200 million euros or 350 million euros for investments in designated assisted areas (“c” and “a” zones, respectively).
Both new manufacturing plants and expansions or conversions of existing production lines are eligible. Two funding tracks are available: projects between 1 million euros and 30 million euros, and large-scale investments above 30 million euros.
Strategic autonomy and market momentum
Beyond environmental objectives, the schemes are designed to bolster Spain’s strategic industrial competitiveness at a time when clean-tech manufacturing capacity is becoming a key geopolitical and economic asset in Europe.
According to Carmen López Ocón, Director of Renewable Energies at IDAE, a previous renewable value-chain support call was resolved in June this year. The newly announced programme significantly broadens that scope under the EU’s updated state-aid framework for clean industry.
“The goal is to strengthen Spanish and European strategic autonomy by incentivising the domestic manufacture of equipment and components, including energy storage technologies,” she said, in line with the Net-Zero Industry Regulation promoted by the European Commission.
This industrial push comes amid strong market momentum. During 2025, Spain installed 8.85 GW of new renewable capacity—mainly solar PV and wind power—supporting industrial electrification and the roll-out of technologies likely to benefit from the new funding rounds.
Finally, IDAE confirmed that one of its representatives will participate in FES IBERIA 2026, a key energy-sector event to be held on 12 February in Madrid, offering stakeholders an opportunity to gain further insight into these support schemes and the future of the clean industry in Spain.
