The Spanish Ministry for the Ecological Transition and the Demographic Challenge (MITECO) has announced more than €162 million in funding for 40 clean technology manufacturing projects across the country. The investment is supported by the European Union’s NextGenerationEU funds through Spain’s Recovery, Transformation, and Resilience Plan. The initiative is designed to strengthen Spain’s clean energy manufacturing industry, improve energy security, increase industrial competitiveness, and accelerate the country’s decarbonization efforts.
The funding will be managed by the Institute for the Diversification and Saving of Energy (IDAE) under the RENOVAL 2 program. The selected projects are spread across 12 autonomous communities and cover a wide range of strategic clean energy technologies. These include 11 projects related to energy storage and battery manufacturing, 10 focused on electrical grid technologies, seven supporting wind and marine renewable energy, five linked to renewable hydrogen, three dedicated to solar photovoltaic manufacturing, two involving heat pump systems, and two aimed at energy efficiency and industrial decarbonization.
The Basque Country has received the largest share of the projects, with 16 initiatives accounting for around 40% of the total. Andalusia and Valencia each secured four projects, while Castile and León and Galicia received three each. Additional projects will be developed in the Canary Islands, Navarre, Aragon, Castile-La Mancha, Madrid, La Rioja, and Murcia, reflecting the government’s goal of promoting industrial development across different regions.
One of the largest investments announced under the program is an €81 million grant awarded to Hithium Spain Innovation. The funding will support the construction of a €405 million battery energy storage system (BESS) and battery cell manufacturing facility in Galar, Navarre. The project is expected to create around 700 direct local jobs, with commercial production scheduled to begin next year.
Other important projects receiving funding include the production of medium-voltage underground cables and wind turbine nacelles in Vitoria-Gasteiz, the development of an advanced hydrogen technology center in Huelva, and the expansion of a solar photovoltaic components manufacturing plant in Llíria, Valencia.
According to MITECO, the projects were selected not only for their technical and financial viability but also for their wider economic, social, and environmental impact. The government considered factors such as strengthening domestic supply chains, reducing dependence on imported clean energy components, creating local employment opportunities, and lowering carbon emissions associated with long-distance transportation. Companies selected under the program will have up to 48 months to complete their projects and will be eligible to request advance payments.
Spain already has a strong renewable energy manufacturing base, producing almost all of its wind turbine components and more than 60% of its solar photovoltaic equipment domestically. However, the country continues to rely on imports for several critical clean energy technologies. Through this latest funding initiative, the government aims to close those gaps, strengthen domestic manufacturing capabilities, and build a more resilient and self-sufficient clean energy supply chain while supporting Europe’s broader energy transition goals.
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