The European Commission has approved a €3.1bn Spanish state-aid to support the production of electricity from new or substantially refurbished highly efficient CHP plants (EU Commission press release, 28/01/2026). Approved under EU State aid rules, the scheme is directed towards operators of new or refurbished CHP installations located in Spain that also meet the definition of high-efficiency cogeneration according to the EU’s Energy Efficiency Directive. The installations must be powered by natural gas (with at least 10% of hydrogen in volume), bioliquids, biogas and solid biomass.
The scheme, which is expected to run for 10 years, will consist of an aid composed of a compensation for investments (determined through competitive auctions) and a compensation for operations (calculated and updated quarterly based on market variables).
The measure will contribute to the implementation of Spain's National Energy and Climate Plan, the Clean Industrial Deal and the EU's energy efficiency targets.
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