The public sector will contribute more than $6,900 million, while private investment is expected to total about $9,500 million.
The implementation of MITECO initiatives will result in the development of about 280,000 high-quality, long-term jobs. PERTE ERHA will strengthen the country’s leading position in the energy transition process by developing technology, knowledge, industrial capacity, their integration into productive sectors, and new business models. The financial system Four lines of assistance, totaling more than 500 million dollars, have already cleared the public disclosure phase and will be released in the coming weeks.
The Council of Ministers approved the Strategic Project for the Recovery and Economic Transformation (PERTE) of Renewable Energies, Renewable Hydrogen and Storage (ERHA) today, on the recommendation of the Ministry for the Ecological Transition and Demographic Challenge (MITECO), to develop technology, knowledge, industrial capabilities, and new business models that will strengthen the country’s leadership position in the field of clean energy.
Its instruments and initiatives will mobilize more than 16.3 billion euros in total investment to develop an energy transition that is planned and built in Spain, maximizing economic, industrial, labor, innovation, and participation potential for citizens and SMEs. It will enable the development of over 280,000 employment in the rest of the economy, including direct, indirect, and induced jobs.
Spain is a global leader in renewable energy. It possesses Europe’s greatest solar resource and also has a significant wind resource. The country has a strong industrial value chain in solar technology, producing 60% of the components, and wind technology, manufacturing 90% of the equipment and ranking third in R&D in the EU. It also leads the way in integrating renewable energy into the power grid.
This capability positions Spain in a unique position to lead in emerging technologies like as renewable hydrogen, storage, and floating marine technologies, which will be critical in the decarbonisation process and will produce long-term prosperity and high-quality, sustainable jobs.
PERTE ERHA was created in this environment, with the goal of positioning Spain as a technical leader, developing and deploying technologies, consolidating renewable energy value chains, and promoting social innovation and economic models, as well as their integration into diverse productive sectors.
The Recovery, Transformation, and Resilience Plan (PRTR) specifies that the ecological transition will get nearly 40% of all investments. The PERTE ERHA is one of the Plan’s most impressive tools, and it’s linked to Components 7, 8, 9, 10, and 17, which are dedicated to innovative renewables, storage, flexibility, and new intelligent energy management models, renewable hydrogen, the Just Transition Strategy, and complementary R + D + I plans, respectively. This core area contains 25 transformative initiatives with an MITECO public budget of 3,558 million and an expected private capital infusion of 5,390 million.
Furthermore, the PERTE ERHA incorporates PRTR cross-cutting elements such as training or direct investment, with 17 facilitating measures on energy transition; mobility with renewable gases; training, vocational training, and employment; and the technological and digital field, with a public financial endowment of 3,362 million, which will allow another 4,060 million in private capital to be attracted.
The PERTE ERHA includes a NextGen Energy monitoring framework for comprehensive energy transition projects, as well as a classification, monitoring, and labeling system for comprehensive projects that combine different Recovery Plan actions and instruments, giving them visibility for clients and national and regional projects. international
In general, PERTE ERHA will provide financial assistance through competitive participation calls to choose the best initiatives. The calls will be judged on the same set of criteria, which will include SMEs’ participation, the influence on territorial cohesion or the just transition, job creation, and innovation. Priority will be given to short-term investments that are compatible with the fulfillment of medium- and long-term objectives.
Between 2022 and 2023, the majority of PERTE ERHA’s assistance lines and support measures will be accessible, and beneficiary projects will operate until 2026. Some of the programs are already underway: four endowed calls with a total budget of more than 500 million dollars have just completed the public information phase to promote the renewable hydrogen value chain, pioneering renewable hydrogen projects, energy storage R&D projects, and energy community pilot projects.
Hydrogen is a critical energy vector for achieving a clean, safe, and cheap energy future because it facilitates decarbonization in sectors where introducing sustainable solutions is difficult, such as heavy transportation, steel, cement, and the chemical industry… Spain already has a Leaf renewable hydrogen pipeline in place, with the goal of achieving 4 GW of production capacity by 2030, accounting for 10% of the EU total.
Spain has a competitive edge in the developing field of renewable hydrogen due to the number and quality of renewable resources, which will allow it to become a worldwide technological centre. That is why the Executive considers it a national initiative, and it is the component of PERTE that receives the highest funding: 1,555 million, which will mobilize another 2,800 million in private capital.
Renewable hydrogen roadmap and sectoral integration, Component 9 of the PRTR, is organized around four lines that span the innovation and development phase to commercial implementation: the industrial value chain, pioneering singular projects, large-scale sectoral integration, and integration into the European market.
As a result, PERTE ERHA will promote the involvement of specialized global SMEs in technological centers and laboratories, as well as the establishment of centers of excellence and professional education and training. It will also fund heavy transportation applications, such as ships, trains, trucks, and buses, as well as large-scale electrolyzer projects for local industrial and commercial purposes.
It will also encourage renewable hydrogen clusters, which will be linked to present fossil-fuel-derived hydrogen consumption locations, in order to replace it with renewable hydrogen. In this situation, among other things, economic efficiency in lowering CO 2 emissions would be considered.
The PRTR’s deployment and integration of renewable energies component intends to increase the value chain and understanding of renewable energies across their entire life cycle, with a specific focus on marine energies. This chapter will get $765 million in help, which will allow another 1.6 billion in private funds to be channeled.
In general, the funding will be focused on unique and innovative initiatives, as well as the expansion of the production capacity of renewable energy equipment and components. Also in the development of biogas from any agricultural activity or waste recovery, as well as its conversion to biomethane, and in the replacement of old wind turbines with new machines – linked to the recycling and treatment of retired equipment – and in the replacement of old wind turbines with new machines – linked to the recycling and treatment of retired equipment.
PERTE ERHA will fund test platforms at a non-refundable fund, support pilot projects, and pay for the logistics adaptation of port infrastructures to deploy renewables in continental waters, in accordance with the Roadmap for the development of offshore wind and marine energy. Spain is the EU country with the most EU R&D facilities for these technologies.
Electrical infrastructures, smart grid promotion, and deployment of flexibility and storage are all critical components of a decarbonized, decentralized, democratized, and digital energy paradigm, according to PRTR Component 8. The PERTE ERHA establishes 620 million in assistance, with the potential to mobilize an additional 990 million in private funds.
Immature technology storage R&D activities, including as commercial pilot projects and industrial research, will be funded. New business models, such as demand aggregation or intelligent data management, as well as the implementation of independent or hybrid storage systems in renewable energy installations, will be pushed.
The PERTE ERHA is linked to PRTR components 10 and 17, which are concerned with the Just Transition and the Strengthening of the National System of Science, Technology, and Innovation, both of which include autonomous communities. In the first example, $30 million will be spent to improve the Fundación Ciuden’s facilities, which will be used to test energy storage technologies and renewable hydrogen, among other things. The second, worth $588 million, will be used to support energy and renewable hydrogen programs.
In addition to the transformative measures, the PERTE ERHA includes 17 facilitating measures that are supported by the ministries of Industry, Commerce, and Tourism; Economic Affairs and Digital Transformation; Education and Vocational Training; and Transport, Mobility, and Urban Agenda, as well as MITECO.
They are accompanied by actions that establish an environment conducive to the realization of PERTE ERHA, such as workplace training and improvements, self-consumption deployment in firms that has a driving influence on the technological value chain, and mobility with renewable-source gases… They will attract more than 4,000 million in private investment with a budget allocation of 3,362 million.
The Institute for Energy Diversification and Savings is given a significant role by PERTE (IDAE). This entity, which is controlled by MITECO, will invest in firms, UTEs, and joint ventures, as well as construct and promote financial instruments like as investment funds and participation loans.
In this regard, the MITECO initiatives contained throughout the PERTE ERHA will allow the creation of almost 280,000 employment in the rest of the economy, including direct, indirect, and induced jobs. More than 185,000 employment might be created by transformative measures, with another 90,000 jobs created by enabling measures. MITECO’s investment, on the other hand, will have a GDP effect of more than $12,300 million and a Gross Value Added of about $11,000 million. The socio-economic impact of other ministries’ and public administrations’ acts must be included to these figures.
The PRTR allows for the acceleration of cross-cutting measures planned in the energy and climate strategy framework, which is why it was formed as a guiding target to concentrate the PNIEC’s primary efforts and signals scheduled until 2025 in the period 2021-2023.
