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🌱 New €405M Spanish Scheme Targets Renewable Energy and Clean-Tech Factories 🚀♻️

Spain launches a €405 million scheme to boost renewable energy projects and clean-tech manufacturing, aiming to strengthen energy security, industrial growth, and the green transition.

Author

Green Glow
January 08, 2026

Spain has unveiled a major new funding programme worth €405 million aimed at accelerating renewable energy deployment and strengthening domestic clean-technology manufacturing. The scheme forms part of Spain’s broader strategy to cut emissions, reduce reliance on imported energy technologies, and position the country as a leading industrial hub for Europe’s green transition.

Announced by Spain’s Ministry for the Ecological Transition and the Demographic Challenge, the initiative combines support for renewable energy projects with large scale incentives for clean-tech manufacturing facilities. Together, these measures are designed to link decarbonisation with industrial growth and job creation.

Table of Contents

Two Pillars of the €405 Million Programme

The funding package is divided into two main components. One focuses on renewable cogeneration and waste-to-energy projects, while the other targets the expansion of clean-tech manufacturing across multiple technologies.

This dual approach reflects Spain’s goal of not only deploying more clean energy but also producing the equipment and systems needed to sustain long-term growth.

€50 Million for Renewable Cogeneration and Waste-to-Energy

The first pillar allocates €50 million to support renewable cogeneration and waste-to-energy projects under the RENOCogen framework. The objective is to help existing facilities replace fossil fuels with renewable alternatives such as biomass, biogas, geothermal energy, solar power, wind power and hybrid systems that include energy storage.

Eligible projects can receive grants covering up to 65 percent of investment costs, with a maximum of €15 million per project. Smaller projects are also encouraged, with a minimum eligible investment threshold set at €50,000. Advance payments of up to 80 percent of approved aid are available, improving cash flow for developers.

Small and medium sized enterprises receive additional support through higher aid intensities, and projects located in just transition zones or regions facing demographic decline receive preferential scoring. These measures are intended to ensure that the energy transition delivers regional economic benefits alongside emissions reductions.

€355 Million to Scale Clean-Tech Manufacturing

The second and largest pillar of the scheme dedicates €355 million to clean-technology manufacturing. This funding targets the creation, expansion and conversion of industrial facilities producing key components for the energy transition.

Supported technologies include solar photovoltaic equipment across the value chain, wind turbine components, batteries, heat pumps, electrolysers for hydrogen production and other energy efficiency technologies. Both new factories and upgrades to existing manufacturing lines are eligible.

Grants generally cover up to 35 percent of eligible costs, with higher caps available in designated assisted regions. Project size categories range from €1 million to €30 million, as well as large scale investments exceeding €30 million. In some cases, total project caps can rise significantly for strategically important locations.

Strengthening Spain’s Industrial Competitiveness

Beyond emissions reductions, the scheme is designed to address growing concerns about Europe’s dependence on imported clean-energy technologies. By supporting domestic manufacturing, Spain aims to strengthen supply chain resilience, attract private investment and create skilled industrial jobs.

The programme aligns with broader European Union priorities, including reindustrialisation, strategic autonomy and the expansion of clean-tech value chains within Europe. Spain’s abundant renewable resources, existing industrial base and strong project pipeline make it well positioned to benefit from this approach.

A Signal to Investors and Industry

The €405 million scheme sends a clear signal to investors that Spain intends to be a long term player in the clean-energy economy. By linking renewable deployment with manufacturing incentives, the government is encouraging vertically integrated growth across the energy sector.

For project developers, manufacturers and regional authorities, the programme offers a significant opportunity to secure funding, modernise infrastructure and participate in the next phase of Europe’s energy transition.

Conclusion

As competition intensifies globally for clean-tech investment, Spain’s latest funding package highlights how national governments are using industrial policy to accelerate decarbonisation while strengthening economic resilience. If successfully implemented, the scheme could help turn Spain into a central manufacturing and deployment hub for renewable energy technologies across Europe in the years ahead.

FAQs

What is the €405 million Spanish renewable and clean-tech scheme?

It is a government funding programme designed to support renewable energy projects and expand clean-technology manufacturing in Spain. The scheme combines support for energy generation with incentives for industrial production.

How is the €405 million funding divided?

The programme is split into two parts. €50 million supports renewable cogeneration and waste-to-energy projects, while €355 million is dedicated to clean-tech manufacturing facilities and production lines.

Which technologies are eligible for funding?

Eligible technologies include solar photovoltaic equipment, wind turbine components, batteries, heat pumps, hydrogen electrolysers, biomass and biogas systems, geothermal energy, and other energy efficiency technologies.

Who can apply for the funding?

Applications are open to industrial companies of all sizes, including small and medium sized enterprises, as well as public entities and consortia that meet the scheme’s eligibility criteria.

How much funding can a single project receive?

Renewable cogeneration projects can receive up to €15 million per project. Clean-tech manufacturing projects typically receive grants covering up to 35 percent of eligible costs, with higher caps possible in designated regions.

Does the scheme support regional development?

Yes. Projects located in just transition areas or regions facing demographic challenges receive preferential treatment to ensure the energy transition delivers economic benefits across Spain.

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