Spain's Ministry of Ecological Transformation (MITECO) has unveiled the regulatory basis for a 750 million euro ($812 million) incentive program for renewable energy and energy storage manufacturing.
The funding will be provided through Spain's Recovery and Rehabilitation Program, which aims to incentivize the production of equipment and components for technologies such as solar modules, cells and electrolyzers. The Institute for Diversification and Energy Efficiency is in charge of the program, and the tender is about to start, but the exact date has not yet been announced.
Solar photovoltaic and battery energy storage systems are among the technologies included in the program. In the case of solar photovoltaics, it will be used in the manufacture and assembly of solar modules; in the case of systems, it will be used in the manufacture and assembly of batteries, cells and battery packs. The program does not include batteries that are primarily used in electric vehicles.
The plan was announced earlier this year with a public consultation. At the time, MITECO announced that future rounds of funding may add other aspects of the supply chain.
Both new assembly plants and expansions of existing plants will be allowed to participate in future tenders. Re-engineering of existing plants (for obtaining new equipment or components not previously available on the assembly line) will also be allowed to participate in tenders. Only projects that have not been initiated prior to applying for the program will be eligible to participate.
Under Article 107, Part 3 of the TFEU, the maximum amount available for a project depends on the location of the plant, with a maximum of Euro150 million, or 15 per cent of the project cost, available for a typical project. Projects located in zone "c" may receive up to Euro250 million or 20%, while projects located in zone "a" may receive up to Euro350 million or 35%.
In addition, the amount available to small firms can be increased by 20%, and medium-sized firms can receive an additional 10%.
When the regulatory basis comes into effect, it will remain in place until the end of 2025.
Internal manufacturing measures
Several countries, including the Netherlands and Germany, have introduced or are in the process of introducing subsidy schemes for renewable energy manufacturing (including solar cells and modules) in order to reduce dependence on third countries, and Spain is among them.
Europe imported 33GW of solar photovoltaic modules from China in the first four months of this year, accounting for 43% of China's total module exports, according to data from the U.S.-based energy analyst Clean Energy Association.
A provision of the Net Zero Industry Act (NZIA), which comes into force on June 29, 2024, requires European member states to build up annual production capacity for net zero products by 2030 in order to meet at least 40% of the annual deployment needs of the 27 member states up to 2030.
Another measure aimed at boosting manufacturing within Europe is the Solar Charter. In April of this year, a majority of EU member states (23 out of 27) signed the charter. According to the Charter, member states and solar industry bodies will "commit" to a series of measures "to support the competitiveness of the European PV manufacturing industry and to promote the creation of markets for high-quality products that meet high sustainability and resilience standards."
Source: https://mp.weixin.qq.com/s/cmu9C2lU1xruyF3TJ0mn7w
