Spain has allocated over €162 million to 40 clean technology manufacturing projects under the RENOVAL 2 program 
The funding supports solar PV, batteries, grid technologies, wind, hydrogen, heat pumps, and industrial decarbonization across 12 regions 
Hithium Spain Innovation received the largest grant of €81 million for a BESS and battery cell factory, expected to create 700 jobs 
Spain’s Ministry for Ecological Transition and the Demographic Challenge (MITECO) has awarded more than €162 million to 40 projects under the country’s RENOVAL 2 program. Battery storage was the largest beneficiary of this round, while 3 solar PV manufacturing projects also made the cut. 
A total of 11 battery storage projects claimed the largest share of the funding, followed by 10 grid technology projects, 7 wind and marine renewable energy projects, and 5 renewable hydrogen projects, as well as heat pumps, energy efficiency, and industrial decarbonization initiatives. 
The largest grant, worth €81 million, was awarded to Hithium Spain Innovation to build a battery energy storage system (BESS) and battery cell manufacturing facility in Galar, Navarre. The €405 million project is expected to create 700 direct jobs and begin production next year. Hithium targets 2027 to commence commercial operations for its maiden factory in the European Union (see China’s Hithium To Invest €400 Million In Navarre Gigafactory). 
For the solar sector, the program includes 3 PV manufacturing projects, including the expansion of a solar PV component manufacturing plant in Llíria, Valencia, for which the Spanish solar inverter manufacturer Power Electronics has bagged €7.67 million in funding. Its subsidiary Power Metal Works has secured €1.45 million for another solar factory in Higueruelas, Valencia. 
Cambridge Energy Spain is the 3rd solar project on the list. It has secured €753 million for its facility in Alcantarilla, Murcia. The complete list of winning projects is available on the IDAE website. 
Spain can produce more than 60% of components within the solar value chain, and 100% for wind power, according to MITECO. “However, there are certain components or elements of this value chain where both Spain and Europe are highly dependent on third-party markets. Hence the importance of supporting not only the deployment of the energy transition, but also new industrial capabilities, which is the objective of this call for proposals,” stated the ministry. 
Alongside economic impact, project selection also considered factors such as job creation, supply chain resilience, and lower transport-related emissions. 
The selected projects are spread across 12 autonomous communities, with the Basque Country hosting 16 projects, followed by Andalusia and the Valencian Community with four each. 
Projects must be completed within 48 months and may also receive funding from other EU programs, provided there is no overlap in eligible costs. 
Administered by the Institute for Energy Diversification and Saving (IDAE), RENOVAL 2 is the Spanish government’s subsidy program to fund domestic manufacturing projects for clean energy technologies. Under the RENOVAL 1 round, the government awarded €296 million to 33 projects, including 7 solar PV projects and 4 battery production facilities, including SUNWAFE’s silicon ingots and wafers project. 
The funding, provided through the EU’s NextGenerationEU Recovery, Transformation and Resilience Plan (PRTR), aims to boost Spain’s industrial competitiveness, energy security and decarbonization. 
Separately, MITECO recently awarded €20 million in NextGenEU funds to 11 projects under the RENOCOGEN 2 program. Managed by the IDAE, this program supports projects that replace fossil fuels with renewables in cogeneration plants. Of the total, 8 selected projects opted for solar PV as the replacement energy source for fossil fuels, while some picked biomass and the remaining a combination of PV and hydrothermal energy. 
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