Dialogos

EU Approves €3.1 Billion Spanish Plan for 'Green' Power Generation

Published January 28, 2026, 20:01
EU Approves €3.1 Billion Spanish Plan for 'Green' Power Generation

The European Commission has approved a Spanish plan worth €3.1 billion to support the production of electricity from new or modernized high-efficiency combined heat and power (CHP) units. The plan aims to implement Spain's National Energy and Climate Plan, the 'Clean Industry Agreement', and the EU's energy efficiency targets. The program, which will run for 10 years, is aimed at operators of high-efficiency CHP facilities in Spain and will support technologies using natural gas, biofuels, biogas, and solid biomass. However, projects using natural gas must incorporate at least 10% renewable hydrogen to avoid long-term dependence on natural gas. The aid will be provided in the form of a 'reward premium', including compensation for investments through competitive auctions and compensation for operation, which will be calculated quarterly based on market prices. The European Commission assessed the plan based on EU state aid rules and found it necessary and appropriate to increase energy efficiency and accelerate the green transition. The Commission's approval of the plan is a significant step for Spain in its efforts to achieve its green energy and energy efficiency goals, while also contributing to the implementation of European climate and energy policies.