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Clean energy for EU islands
Regulatory informationRES-heating and cooling

Subsidy (Grants for investment in RE electricity and thermal projects)

Abbreviated form of legal source(s)

Order TED/765/2020

Description of support scheme

MITECO and IDAE, with funds from European Regional Development Funds (ERDF), are entitled to allocate non-refundable grants for renewable energy projects (electricity and thermal) for a total of 246 million EUR.
Order TED/765/2020 established the regulatory bases for the award of grants for these projects. Based on this order, the IDAE, in collaboration with each Autonomous Community, has opened different programmes to grant aid.

Amount

Order TED/765/2020 did not establish a limit in the grant amount. However, article 13 prescribes that the decision granting the aid shall specify the total amount of aid granted, expressed in €, which may not exceed the ceiling of €15 million per project.
These grants are incompatible with other support schemes (article 10, Order TED/765/2020).

Addressees

Natural or legal entities, public or private, who develop a project under the conditions set by the regulation, i.e., project of thermal energy production from renewable sources, such as geothermal energy, solar thermal energy, aerothermal energy linked to photovoltaic installations or biomass, mainly focused on the development of innovative applications in industry and the service sector to achieve a significant reduction in emissions and a high level of self-consumption. Community projects can also apply for funding (article 6, Order TED/765/2020).

Procedure

To get the grant, applicants need to participate in the competitive mechanism organized per each call for proposal. Not only economic criteria are taken into consideration (i.e., low bid price), but other criteria, such as location, administrative viability, and positive externalities (e.g. owned by a RE community) (article 25, Order TED/765/2020).

Competent authority

  • MITECO
  • IDAE

Technologies

Aerothermal
Hydrothermal
Biogas

Eligible

Biomass

Eligible

Geothermal energy

Eligible

Solar Thermal

Eligible