This participation is structured through the mechanism Auctions-as-a-Service (AaaS) from the Innovation Fund, which allows Member States to finance with their own funds national projects that have been well rated in the European auction.
An opportunity to accelerate the deployment of renewable heat in industry
The European Commission's new auction will support solutions for producing industrial heat renewablely and with high efficiency in ranges of low temperature (100–400 ºC), common in the agri-food, paper, timber, ceramics or chemical sectors.
Spain will allocate 30 million euros to low-temperature projects and low power (3–5 MWt), and 20 million to low-temperature projects and medium power (>5 MWt). These categories encompass three major technology families:
-
Electrification of heat (heat pumps, resistive heating, plasma).
-
Direct renewable heat through technologies such as solar thermal, geothermal or biomass.
-
Hybrid systems that combine electrification and manageable renewable sources.
The auction approach explicitly recognizes that, for many industrial processes, Electrification is not always viable or sufficient, and that direct renewable heat remains essential to achieving decarbonization targets quickly, reliably and at stable costs.
The AaaS mechanism: more options for Spanish projects
National participation in this scheme allows that Spanish projects that pass the European evaluation, But those that are left without funding due to the exhaustion of the community budget can receive support with funds contributed by Spain.
In practice, Spain uses the European auction as a selection process and subsequently selects competitive industrial initiatives that contribute renewable heat and energy efficiency to the country. This avoids additional national calls for proposals and accelerates the arrival of funding to projects that can reduce emissions immediately.
Spain will also strengthen the European renewable hydrogen auction
Along with the 50 million allocated to industrial heating, the Government will contribute 415 million euros to the third auction of European Hydrogen Bank, focused exclusively on Renewable non-biological hydrogen (RNBH) produced by electrolysis with renewable electricity.
This category does not include hydrogen produced from biogas, biomass or biomethane, which have other regulatory frameworks. However, this funding helps to consolidate the Spanish value chain associated with renewable hydrogen and its use in sectors where the electrification of heat is difficult or impossible.
Spanish projects eligible for funding through AaaS will need to submit documentation and guarantees within shorter deadlines than in the previous call, as final decisions must be published before the August 31, 2026 since these are funds from Recovery and Resilience Mechanism
The new European auction marks a milestone in support for renewable heat In the industry: for the first time, the European Union is establishing a competitive and technology-neutral mechanism to select the most efficient and mature thermal solutions.
For Spain, the contribution of 50 million represents an opportunity for projects based on biomass, solar thermal, geothermal or hybrid systems advance in sectors with high energy demand and strong decarbonization needs.
Fountain
Photo: The Vice President of the Government and Minister for Ecological Transition and the Demographic Challenge with attendees at the Q-Zero Alliance meeting