Spain secures EU approval for €9 billion power capacity support scheme

Wednesday, 03 June 2026 10:58:12 (GMT+3)   |   Istanbul

The European Commission has announced that it has approved a €9 billion Spanish capacity support scheme under EU State aid rules, paving the way for a long-term support framework designed to safeguard electricity supply and strengthen grid reliability.

The scheme will operate for 10 years and is intended to ensure that sufficient generation, energy storage and demand-side flexibility resources remain available during periods of electricity system stress.

Capacity providers to be selected through auctions

Under the scheme, Spain’s transmission system operator (TSO) will procure the capacity required to meet the country's electricity reliability standards. Capacity providers will receive remuneration in exchange for committing to be available when needed during supply shortages or peak demand periods.

Participation will be awarded through competitive auctions that are intended to be transparent, technology-neutral and non-discriminatory. The scheme is expected to provide approximately €900 million per year in support. Over the 10-year implementation period, total funding could reach around €9 billion, although the final amount will depend on auction results and actual capacity procurement requirements.

Cross-border participation planned

Initially, participation will be limited to projects located within Spain. However, the Spanish government has stated its intention to open the scheme to capacity providers located in interconnected EU member states as soon as practical arrangements allow. This approach aligns with broader EU efforts to enhance electricity market integration and improve regional energy security.

According to the European Commission, the Spanish scheme broadly follows the principles established under the Clean Industrial State Aid Framework (CISAF).

ElifKefeli
Elif Kefeli
Editor
All Articles by the Author

I graduated from Yeditepe University’s Department of Translation and Interpreting Studies in 2017. I joined SteelOrbis in 2021, where I currently work as a content specialist. I am writing news reports and industry-related content with a special focus on decarbonization, green steel, sustainability, and recycling.

Similar articles

European longs demand slows price recovery amid high energy costs, import segment reverses trend

European HRC prices edge up, buyers resist ArcelorMittal's higher offers

Spanish scrap prices may decline, but mills have yet to take a position

Tubacex reports net loss in Q3 2026 as Middle East disruptions weigh on profitability

Acerinox's profit jumps in Q3 2026 as US business boosts results despite weak European demand

European longs market shows upward trend, while Turkish import offers decline

Acerinox and IGNIS to invest €40 million in decarbonization projects in Spain

New car registrations in EU up 5.7 percent in Jan-Sep 2026

UNESID urges higher carbon compensation as Spanish steel faces €43 million funding gap

Prices rise in Spanish scrap market in October as expected, now holding firm