Spanish Prime Minister announces $2.5bn in new subsidies for green energy and hydrogen
Funds to be available for renewable and H2 supply chain, including wind, solar and electrolyser manufacturers
Spain’s Prime Minister Pedro Sánchez has announced in a speech to Congress yesterday (Wednesday) that his government will allocate €2.3bn ($2.5bn) towards four new subsidy programmes “in the coming days”, including €1.2bn for renewable hydrogen hubs.
The state aid, which according to local reports will be launched this month, will come in addition to the €794m already announced earlier this month under the EU's Important Projects of Common European Interest (IPCEI) programme, approved by the European Commission in September.
Another €750m of the €2.3bn will go towards building out supply chains for green technologies, including manufacturing sites for wind turbines, solar panels, batteries, heat pumps and electrolysers.
The remaining €350m will go towards supporting community energy schemes and installation of renewables particularly in agricultural areas.
Spain is expected to be a leader in cheap green hydrogen production, owing to strong solar resource.
However, while some pilot projects have already started operation, such as Iberdrola’s 20MW Puertollano electrolyser, many developers have held off on a final investment decision on large-scale facilities until subsidies are in hand.
- This article was published first by Hydrogen Insight