MADRID – Spanish Prime Minister Pedro Sanchez announced on Wednesday a new plan worth 2.3 billion euros ($2.5 billion) to accelerate the country’s transition to clean energy. The plan includes subsidies for green energy industries and hydrogen production from renewable power.
The plan also features measures to support agriculture, infrastructure, and rural areas in their transition to green energy, Sanchez stated in an address to the lower house. However, he did not provide further details.
Spain has emerged as a renewable energy leader in Europe, leveraging its abundant sunshine and strong winds for energy production. With renewables setting new records, the country aims to become a major producer of green hydrogen from renewable electricity.
Earlier this month, Madrid approved a 794 million euro subsidy package for large green hydrogen projects, with a potential overall electrolysis capacity of 652 megawatts. Subsidies are crucial for green hydrogen projects due to their high costs and lack of competitiveness without public support.
Spain’s draft climate strategy sets a 2030 target of 11 gigawatts (GW) for electrolysers, up from a previous target of 4 GW.