Spain seeks public comments on draft order for geothermal grants

Spain seeks public comments on draft order for geothermal grants MITECO, Spain (source: MITECO)
Carlo Cariaga 31 Oct 2022

The Spanish Ministry for Ecological Transition is calling for public comments on a draft order for the granting of aid to geothermal feasibility studies.

Spain’s Ministry of Ecological Transition and the Demographic Challenge (MITECO) has published the draft order approving the regulatory bases for granting aid to feasibility studies of innovative geothermal projects with medium to high temperatures, as well as the draft resolution for a first call. The Ministry is now soliciting for public comments on the draft order to be sent to until 23 November, 2022.

Details on the draft order and resolution are available here.

The purpose of this public consultation is to directly obtain the opinion of all entities interested in carrying out feasibility studies for innovative projects for medium to high-temperature geothermal. The Ministry asks that all comments be sent with subject “Public information incentives for deep geothermal feasibility studies.”

The proposed grant aid will be in the form of economic incentives to be used for the technical evaluation, analysis, and quantification of the geothermal resource in a given area. This includes the performance of exploration and research necessary for said evaluation, as well as economic valuation and resources necessary to execute the project, its opportunities and risks, and ultimately its prospect for success.

These studies will be the basis for undertaking the first medium and high temperature geothermal projects for power generation in Spain. The manifestation of these facilities will increase the supply of renewable energy and reduce energy dependence on fossil fuels in Spain, especially in the Canary Islands, a territory with significant geothermal resources, according to studies carried out to date.

Among the criteria to be assessed, in addition to technical and economic, are those related to the degree of maturity of the proposals. The participation of public entities will be considered with positive value in the collaboration between the business sector, technology centers, and public administrative bodies.

The Institute for Energy Diversification and Saving (IDAE) will be in charge of managing the aid. Grants will awarded on a competitive basis and will be implemented as a subsidy to be received by the beneficiary, definitively , once the execution of the study is verified and the eligible costs incurred are accredited. The amount of aid to be granted is determined in the call, complying, in any case, with the limits established by Regulation (EU) 651/2014 of the Commission, of June 17, 2014 (RGEC).

The funds, which are included in Component 7 (C7), “Deployment and integration of renewable energies” of the Recovery, Transformation and Resilience Plan (PRTR), include a budget for investment 1 actions (C7.I1), as well as as a budget for specific actions in the Autonomous Community of the Canary Islands corresponding to investment line 2 (C7.I2) “sustainable energy on the islands”.

Source: MITECO