The European Commission has approved a €3.1 billion Spanish State aid scheme to support electricity production from high-efficiency combined heat and power (CHP) plants. The measure, valid for 10 years, aims to advance Spain’s National Energy and Climate Plan, the Clean Industrial Deal, and EU energy efficiency targets. Beneficiaries include operators of new or refurbished CHP installations using natural gas, bioliquids, biogas, or solid biomass. Projects involving natural gas must incorporate at least 10% renewable hydrogen. Aid takes the form of a remuneration premium with two components: investment compensation via competitive auctions and operational compensation adjusted quarterly based on market variables. The Commission deemed the scheme necessary to boost energy efficiency, ensure proportionality, and avoid distorting competition, aligning with the 2022 State aid Guidelines for climate and energy initiatives.
© European Union Adapted from https://www.europa.eu , licensed under CC BY‑4.0 (https://creativecommons.org/licenses/by/4.0/ ).
https://competition-policy.ec.europa.eu/about/news/commission-approves-eu31-billion-spanish-state-aid-support-cogenerated-electricity-2026-01-28_en
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