Spain Launches €355 Million Program to Boost Renewables Manufacturing

Spain Unveils €355 Million Boost for Renewable Energy Manufacturing

The Spanish government, through the Ministry of Ecological Transition (MITECO) and its Institute for the Diversification and Saving of Energy (IDAE), has launched a new €355 million subsidy program, known as RENOVAL 2, to significantly bolster the domestic manufacturing of renewable energy equipment. This initiative is designed to strengthen Spain's industrial value chain and accelerate its energy transition.

The funding for this program is sourced from the European Union's NextGenerationEU recovery funds, specifically under Spain's recovery and resilience plan (PRTR). The primary objective is to incentivize the production of key components and equipment across a broad spectrum of clean energy technologies, thereby enhancing Spain's energy autonomy and competitiveness in the green economy.

Broad Scope for Industrial Development

The RENOVAL 2 program supports a wide array of manufacturing projects, including the establishment of new factories, the expansion of existing capacities, and the conversion of current production lines to produce renewable energy components. Eligible technologies span numerous sectors:

• Solar PV: encompassing polysilicon, ingots, wafers, cells, modules, solar glass, inverters, trackers, and mounting structures.
• Wind Energy: covering both onshore and marine renewables.
• Energy Storage: including batteries and other storage solutions, with the exception of electric vehicles.
• Green Hydrogen: focusing on electrolysers and fuel cells.
• Other Technologies: such as heat pumps, geothermal energy, sustainable biogas and biomethane, power grids, hydropower turbines, and equipment for industrial decarbonisation.

Of the total €355 million, €25 million is specifically allocated for projects with eligible budgets ranging from €1 million to €30 million. The remaining €330 million is reserved for larger projects exceeding €30 million in eligible budget. The maximum aid for a single project will not surpass €150 million or 15% of its eligible costs, though higher limits may apply for projects in designated EU 'a' and 'c' regions and for small and medium-sized enterprises (SMEs).

Strategic Alignment with National and European Goals

This program is a crucial component of Spain's broader commitment to a just energy transition and aligns with the European Union's Clean Industrial Deal and the REPowerEU chapter of Spain's Recovery and Resilience Plan. It also forms part of the larger PERTE ERHA (Strategic Project for Economic Recovery and Transformation for Renewable Energies, Renewable Hydrogen, and Storage), a comprehensive national strategy aimed at positioning Spain as a technological leader in clean energy production and management. Spain already boasts a strong manufacturing base, producing nearly all components for wind farms and a significant portion of the solar energy value chain.

Application Window and Previous Successes

Companies interested in participating in the RENOVAL 2 program can submit their proposals between January 22 and February 25, 2026. This is the second iteration of the RENOVAL program; the first round successfully allocated over €210 million out of €300 million, primarily to solar PV manufacturing projects. Notable beneficiaries included Sunwafe, which received a substantial award for a 20GW wafer manufacturing plant in northern Spain.

The RENOVAL 2 program is expected to further solidify Spain's position as a key player in the European clean technology landscape, fostering innovation, creating jobs, and reducing reliance on external markets for critical renewable energy components.