Jakarta, INTI - The European Commission announced on Wednesday that it has cleared a €3.1 billion ($3.4 billion) state aid program from Spain aimed at boosting electricity generation from high-efficiency power plants, as part of the European Union’s broader efforts to reduce greenhouse gas emissions.
The scheme will provide support for new or significantly upgraded combined heat and power (CHP) facilities that operate using natural gas, bioliquids, biogas, and solid biomass.
Natural gas-based projects will be required to install equipment capable of using at least 10% renewable hydrogen by volume, a measure intended to prevent long-term dependence on fossil fuels.
Aligning State Aid with EU Climate Targets
The European Union is currently targeting a reduction in net greenhouse gas emissions of at least 55% by 2030, with the goal of achieving climate neutrality by 2050. As part of this effort, the bloc is also working to curb overall energy consumption to lessen the impacts of climate change.
According to the European Commission, Spain’s support scheme will operate for a decade and be available to operators of combined heat and power (CHP) facilities that qualify as high-efficiency cogeneration under the EU’s Energy Efficiency Directive.
Financial support will be provided in the form of a premium payment, designed to offset both the investment costs required to bring CHP plants into operation and their ongoing operating expenses, which will be calculated and adjusted on a quarterly basis.
Conclusion
The approval of Spain’s state aid scheme highlights the EU’s effort to balance energy security with climate ambitions. By tying financial support to efficiency standards and renewable hydrogen use, the policy seeks to modernize power generation while limiting fossil fuel dependence and supporting the bloc’s long-term transition toward a low-carbon energy system.
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