Spain promotes energy efficiency with INNOVAE: funding for sustainable and innovative projects

Energy efficiency has become a top priority for public investment in Spain. Consequently, several aid programs aimed at reducing energy consumption and modernizing infrastructure have been announced in recent months.

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Specifically, the Institute for Energy Diversification and Saving (IDAE) has launched INNOVAEa program endowed with 115 million euros charged to the National Energy Efficiency FundThe aim of this funding program is to promote innovative, unique projects capable of generating significant energy savings. Specifically, it targets sustainable mobility, industry, existing buildings in the service sector, and cooling systems.

The program will be awarded on a competitive basis and through non-refundable grantApplications can be submitted without the need to provide guarantees and there is a possibility of an advance of up to 80%, subject to the establishment of guarantees.

The 115 million euros are distributed as follows: four strategic areas:

Sustainable mobility: It will have 30 million euros allocated to actions that reduce travel or improve the energy efficiency of transportEligible projects include shared mobility solutions, sustainable urban mobility plans, Big Data or AI applications to reduce energy consumption, and initiatives that promote a modal shift towards more efficient transport models. To qualify for funding, projects must achieve a minimum annual energy savings of 60 tons of oil equivalent (toe) and a minimum eligible investment of €200.000.

Industry: The program will also fund actions that enable reduce energy consumption through technological improvements in industrial production processesCompanies whose CNAE codes fall within divisions 07 to 39, with certain exceptions, as well as energy service companies, will be eligible for the €30 million allocated to industry. Projects must achieve a minimum reduction of 20% in final energy consumption and have a minimum eligible investment of €100.000.

Tertiary sector buildings: This line aims to facilitate the evolution of existing buildings towards zero emissions standardsIn this case, administrative, healthcare, commercial, hotel, educational, cultural, sports, and other tertiary sector buildings may be eligible. Projects must, at a minimum, integrate two energy efficiency improvement measures and achieve: a minimum savings of 60% in primary energy, a minimum reduction of 20% in final energy consumption; and a final energy rating of A or B for CO2 emissions.

Replacement of refrigeration generators: The last line is oriented towards the renewal of large refrigeration systems using more efficient technologiesSpecifically, it will have 25 million euros allocated to projects replacing mechanical compression equipment over 100 kW. It will also fund projects connecting to refrigeration networks and modernizing associated systems.

One of the most relevant aspects of INNOVAE is its evaluation system. The maximum score will be 100 points, distributed across four main criteria: energy saving and efficiency (40 points), economic criteria (25 points), innovation and technological development (25 points) and socio-economic benefits and externalities (10 points).

Projects must demonstrate an efficient relationship between investment and energy savings, adequately justify their level of innovation, and prove their capacity to generate additional positive impacts. Projects located in municipalities affected by demographic challenges or in just transition zones will also be highly valued.

In addition to INNOVAE, IDAE will Allocate 168 million euros to provide air conditioning and improve energy efficiency in hospitals, health centers and public healthcare buildingsThe funding for this program, the PREE SanitaryThis will be transferred to the autonomous communities and cities for their management. In addition to this, the following will be added: Educational PREE, with a planned allocation of 200 millones de euros to promote similar actions in public schools and educational centers.

For the industrial sector, the Sectoral Conference on Energy has approved a territorial distribution of 300 million euros allocated to the Energy Efficiency Aid Program for SMEs and large companies in the industrial sectorThese funds will also be managed by the autonomous communities and cities.

The current context is increasingly oriented towards decarbonization and resource optimization. Advance project preparation will be key to make the most of this new line of aid.

Enrique Roca, 

Technical Manager Environment and Sustainability at Euro-Funding