The Government will allocate 6.9 billion European funds to ‘green’ hydrogen, renewables and storage

After approving the Strategic Project for the Recovery and Economic Transformation (PERTE) of automobiles and health, the Council of Ministers approved this Wednesday the third of these major projects: the PERTE of renewable energy, ‘green’ hydrogen and storage (ERHA) that plans to mobilize an investment of more than 16.3 billion euros, of which the public sector will contribute more than 6,900 million.

“When we see the price volatility (of electricity), the best recipe is to promote the transformation of our system to reduce dependence on the exterior in terms of fuels “, has indicated the vice president and minister for the Ecological Transition and the Demographic Challenge, Teresa Ribera, in the press conference after the meeting of the ministers.

As explained by the vice president, this ERHA project will be structured in four large blocks. On the one hand, 3,588 million euros will be allocated to transformative measures that will channel another 5,390 million of private capital and another 3,330 in facilitating measures on ecological transition, mobility of renewable gases, training and employment that will attract another 4,060 million of private capital. In addition, a monitoring system and a specific seal, called NextGen energy, which will allow the identification of easily scalable or replicable solutions in other areas of the productive fabric and the economy.

The objective of PERTE, therefore, is to position Spain as a technological benchmark in these technologies, consolidate the value chains of renewable energies (Spain produces 690% of photovoltaic components and 90% of wind power equipment) and promote innovation in the development of ‘green’ hydrogen and storage that are still under development. And with it, it is expected to generate 185,000 direct and indirect jobs and another 90,000 induced jobs, as well as generate an impact on GDP of more than 12.3 billion euros.

transformative measures

Specifically, at renewable hydrogen 1,550 million euros will be allocated (they will mobilize 2,800 million of private capital) that will revolve around four lines that range from the innovation and development phase to their commercial implementation: the industrial value chain, pioneering singular projects, integration large-scale sectoral, and integration into the European market. The appeal of green hydrogen lies in being one of the few solutions that exist to decarbonize those uses that cannot yet be electrified, such as big industry or the heavy transport, but it is not yet a competitive energy vector. On the other hand, the amount of aid intended for the renewable energy It amounts to 765 million, which will allow the channeling of another 1,600 million private ones and whose support will be in singular and innovation projects, and the reinforcement of the manufacturing capacity of equipment and components associated with renewables, with special attention to marine energies. Also in the replacement of old wind turbines by new machines – linked to the recycling and treatment of retired equipment – and in the development of the biogas from any agricultural activity or waste recovery, as well as its conversion to biomethane. In addition to supporting pilot projects and paying for the logistical adaptation of port infrastructures to deploy offshore wind and the energy of the mas.

In the case of promotion of smart grids and the deployment of flexibility and storage, 620 million of aid is established, capable of mobilizing another 990 million private to subsidize R&D initiatives for the storage of immature technologies, including commercial pilot projects and industrial research, promoting new business models – such as demand aggregation or the intelligent data management – and the deployment of storage systems, independent or hybridized in renewable facilities.

First calls

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As in the case of other PERTE, the aid will be granted through competitive competition calls which will take into account the participation of SMEs, the impact on territorial cohesion or the just transition, job creation or innovation. The bulk of the lines will be available between 2022 and 2023, and the beneficiary projects will run until 2026. However, the vice president has revealed that the Government plans to convene next week first four programs, endowed with more than 500 million, to be resolved next year: boost to the renewable hydrogen value chain (250 million euros), pioneering renewable hydrogen projects (150 million euros), R&D projects in energy storage (50 million euros) and pilot projects for energy communities (40 million euros).

In addition, Ribera recalled that the Executive has already executed 5,190 million euros allocated to the field of energy with measures aimed at promoting the penetration of renewables, energy efficiency and innovation. Of that figure, around 3,500 million have been transferred to the autonomous communities, while 1,690 million are managed centrally by the State.