European Commission approves €1.1-bn Spanish State aid scheme

The scheme was approved under the State aid Temporary Crisis and Transition Framework, adopted by the Commission on March 9 this year and amended on November 20, to support measures in sectors key to accelerate the green transition and reduce dependence on fuel. 

Spain notified to the Commission, under the Temporary Crisis and Transition Framework, a €1.1 billion scheme to support investments for the production of relevant equipment necessary to foster the transition to a net-zero economy. 

Under this measure, which will be funded through the Recovery and Resilience Facility, 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 will incentivise the production of relevant equipment for the transition towards a net-zero economy, and will be granted no later than December 31, 2025.

The Commission concluded that the Spanish scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance for the implementation of the Green Deal Industrial Plan, it said in a release.

ALCHEMPro News Desk (DS)