Commission approves €1.1 billion Spanish State aid scheme to support investments in equipment necessary to foster the transition to a net-zero economy

The European Commission has approved a €1.1 billion Spanish scheme to support investments for the production of equipment necessary to foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan. The scheme was approved under the State aid Temporary Crisis and Transition Framework.

Under this measure, which will be funded through the Recovery and Resilience Facility (“RRF”), the aid will take the form of direct grants. The measure will be open to companies producing relevant equipment, namely batteries, solar panels, wind turbines, heat-pumps and electrolysers, as well as key components designed and primarily used as direct input for the production of such equipment or related critical raw materials necessary for their production.

The Commission found that the Spanish scheme is in line with the conditions set out in the Temporary Crisis and Transition Framework. In particular, the aid (i) will incentivise the production of relevant equipment for the transition towards a net-zero economy; and (ii) will be granted no later than 31 December 2025.

Commissioner Didier Reynders, in charge of competition policy, said:“This €1.1 billion Spanish scheme will support projects for equipment that is necessary for the transition to a net-zero economy, such as batteries, solar panels, heat-pumps, wind turbines and electrolysers. This is an important step towards Europe’s ambitious climate targets while protecting the level playing field in the Single Market.”