The Renewable Energies Plan (2005-2010) provides for the granting of incentives for investments by enterprises in technological innovation in the field of renewable energies, as well as the creation of lines of public aid, with a planned investment of approximately €23,598,641 million.

The Plan has a twofold purpose, first to bolster the priority aims of the Government’s energy policy, focused on guaranteeing the supply of electricity, on its security and on respect for the environment, and secondly, to fulfill Spain’s commitments at international level (Kyoto Protocol, National Allotment Plan) and those arising from Spain’s membership in the EU. Precisely in compliance with the latter, the Ministry of Industry, Tourism and Trade has sent the European Commission the 2011-2020 Renewable Energy Plan, in which it again emphasizes the importance of renewable technologies, with estimates for 2020 of 22.7% of the gross final energy consumption and 42.3 % of the gross electricity generation.

In line with this line of support for business investments in renewable energies, the Council of Ministers approved a new Action Plan 2008-2012 for the Energy Saving and Efficiency Strategy in Spain (PAE 4+) which is to strengthen Spain’s position at the cutting edge of energy saving and efficiency.

In this context, the Institute for Energy Diversification and Saving (Instituto para la Diversificación y Ahorro de la Energía or IDAE) has been developing a number of specific aid programs in the renewable energy industry.

In particular, the IDAE currently provides potential investors, inter alia, with the following lines:

• Project Finance and Lease of Services Line fundamentally aimed at investment projects in energy savings, energy efficiency and renewable energies, which have a preliminary analysis of technical/economic viability.
• Strategic Projects Aid Program, designed to provide incentives to companies for carrying out multi-year investment projects in energy saving and efficiency technologies.
• Biomcasa Program, aimed at bolstering the configuration of an energy supply based on the use of biomass, in line with the needs of potential users of hot water and air conditioning in buildings.
• Geocasa Program which is to instrument a system for financing geothermic installations in buildings for authorized companies with a view, as well, to bolstering a quality offer in line with the needs of potential users of hot water and air conditioning in buildings.
• Solcasa Program, with the same objective as the foregoing, this program aims to set up a system of financing for solar thermal facilities in buildings for authorized companies.

Meeting the objectives of the Plan for the Development of Renewable Energies also requires R&D&I initiatives, which has led to the involvement of the energy industry in the various R&D&I programs currently being implemented at EU and national level. In particular, the National Plan for R&D&I (2008-2011) includes an initiative focused on Energy and Climatic Change in the area known as “Strategic Action”.

In turn, most Autonomous Communities also offer subsidies and public aid under their own plans and programs to support renewable energies.

For more information on Investment aid & incentives, you can download the following document:

Investment aid and incentives (1572kb.)

Prepared by Garrigues

Last updated: 19|07|2010