New call for grants for investments in clean energy projects in municipalities

The call for grants for investments in local clean energy projects in demographically challenged municipalities (DUS 5000 PROGRAMME), within the framework of the Spanish Regeneration and Demographic Challenge Programme of the Recovery, Transformation and Resilience Plan, is now available. The initial budget of the call amounts to a total of 75,000,000 euros, financed from IDAE funds.

Here are the key points of this call for applications.

Scope of application

Projects will be developed in:

• Municipalities with demographic challenge, up to 5,000 inhabitants.

• Non-urban municipalities with up to 20,000 inhabitants in which all their singular population entities have up to 5,000 inhabitants.

Compatibility of grants

They are compatible with other grants or subsidies for the same purpose, provided that they do not originate from a European Union fund or grant programme, and that the amount of the grant, alone or in conjunction with other incentives, does not exceed the cost of the project.

Beneficiary entities

• Local authorities
• Other local or supra-local bodies other than those listed above
• Autonomous bodies and public entities
• Uniprovincial Autonomous Communities and the Autonomous Community of Navarre.

The procurement procedure for supplies, works and/or services necessary for the implementation of the projects shall be subject to public procurement.

Projects to be granted

Singular local clean energy projects: improving the energy efficiency of buildings and infrastructures, deployment of renewable generation or boosting sustainable mobility.

Eligible projects may be framed within one of the following measures:

Measure 1 – Reduction of energy demand and consumption in public buildings and infrastructures.

Measure 2 – Renewable electricity generation facilities for self-consumption.

Measure 3 – Renewable thermal generation facilities and heating and/or cooling networks.

Measure 4 – Fight against light pollution, efficient and intelligent lighting, Smart Rural and ICT.

Measure 5 – Sustainable Mobility.

It must be ensured that the EU’s Do No Significant Harm (DNSH) principle is respected.

Financial limits: projects with total eligible investment between €40,000 and €3,000,000.

Maximum support per municipality: up to €6,000,000.

Amount of grants and funding criteria

Grants will be allocated on a first-come, first-served basis.

Maximum grant: 85% of eligible investment. 100% for “integral projects”, with a significant impact on the energy transition of the municipality. Depending on the measure in which they are framed, projects must carry out the following actions:

• Measure 1: refurbishment of the building and improvement of the energy rating to at least 2 letter grades or to A

• Measure 2: installation of renewable generation that accounts for 70% of annual consumption. Drawing up and publication of an inventory of roofs or spaces for self-consumption and development of regulatory changes to facilitate self-consumption in the municipality. 80% of renewable generation must correspond to consumption by public entities without economic activity.

• Measure 3: two typologies:

  • Projects that involve the incorporation of renewable thermal generation to satisfy at least 60% of the building’s thermal demand for DHW and heating (or 80% of the heating and cooling demand for heat pump projects).

  • Implementation of a heat network for 3 or more buildings or infrastructures (80% of the thermal energy must be consumed by public entities).

• Measure 4: comprehensive replacement of at least 90% of the municipality’s lighting installations to maximise the reduction of light pollution.

• Measure 5: two typologies:

  • Projects that justify energy savings of at least 15% compared to the existing mobility profile in the area of implementation of the measure and demonstrate a reduction of barriers and improvement of accessibility.

  • Projects to implement on-demand public transport platforms using plug-in electric vehicles.

Projects combining actions from at least three different measures from the ones described above, with an eligible cost of at least 50,000 euros per measure, will also be eligible for support.

Submission, formalisation and assessment of applications

The deadline for submission of applications is from 13h on 6 November until the end of the programme’s duration (which will be either when the budget is exhausted or one year after the start of the application period, this is, until 6 November 2022).

Applications will be processed through the IDAE’s electronic office: https://sede.idae.gob.es.

Deadline for realisation and justification of eligible investments and project implementation

There will be a maximum of 24 months from the date of notification of the decision.

The justification of the completion of the project must be made within a maximum of 2 months from the date on which the maximum period for its execution expires. In any case, the deadline for submitting any documentation will be 30 November 2025.