Podcast by Repsol Fundation and EsadeGeo: the combination of climate policy and industrial policy

Another important subsidy goes to support the installation of energy systems based on renewable sources, such as solar, wind, and geothermal energy. The main source of public funding found in this area consists of grants for self-consumption and storage using renewable energy sources, as well as the implementation of renewable thermal systems in the residential sector (RD 477/2021 PRTR). This program is focused on installing renewable self-consumption systems, both electric and thermal, and consists of six sub-programs with different incentives.

Incentive programs 1, 2, and 3 are focused on the business sector:

• Program 1: Installing self-consumption systems for the service sector.
• Program 2: Installing self-consumption systems for other economic productive sectors.
• Program 3: Integrating storage in existing self-consumption systems in all sectors.

With regard to these first three programs, the subsidies will be calculated by applying a percentage to the total costs incurred by the user during the process, such as materials and labor. Depending on the amount of those costs and the power installed, the user may receive a certain percentage of funding, as detailed in the following table.

To achieve the objectives established in the REPowerEU plan, the European Commission has established a financing budget of 210 billion euros from its implementation in 2022 until 2027. An amount that must be invested optimally by the member states to ensure cost-effectiveness and the success of the measures. In order to access the economic resources that the EU has assigned each member state to manage each point of the plan nationally, the system has been made more flexible in order to speed up the necessary procedures.

In particular, in this point it must be taken into account that most of these projects are of long duration and require time to deliver results. That is the case with plans related to the implementation of cross-border connections and infrastructures among countries, vital to be able to build an integrated energy market. It is also important that part of the investments are aimed at the increase in the storage capacity of states to reduce foreign dependence, as well as the adaptation of the electrical grid to guarantee increased production in this area.

Implementation of the plan in Spain

Like the rest of the member states, our country has also set applying the measures of the REPowerEU plan and complying with the European Community's requirements as a target. Among the main national proposals, we can find within this agreement, the publication of a series of public subsidies aimed at promoting renewable energy and energy efficiency projects, both among ordinary citizens and companies, stands out. For example, with incentives for self-consumption installations or aid for the improvement of energy efficiency within the State Housing Plan 2022–2025. Different investments in clean energy with public and private collaboration are also being carried out, with a special emphasis on sectors such as renewable hydrogen.

Furthermore, in order to favor saving among consumers and to work on energy awareness, different advertising campaigns focused on raising awareness of the serious problem of wasting energy have been launched. An example is the campaign produced alongside the IDAE (Institute for the Diversification and Saving of Energy) under the concept “derrochólicos” [wasteful]. 

With the application of all these measures within the REPowerEU plan, Spain and the European Union are joining forces to face an essential structural transformation that guarantees their energy future. A more sustainable and cleaner future that will only be possible through cooperation, joint decision-making, and solidarity between all member countries.