The European Commission has approved Spain’s support scheme for renewable electricity.
It found the programme, which supports electricity generation from green energy sources, high efficiency cogeneration of heat, power and waste to be in line with state aid rules.
Under the scheme, projects will receive a premium on top of the market price of electricity, which is meant to help them compensate for costs that cannot be recovered from selling power in the market.
Commissioner Margrethe Vestager, in charge of competition policy said: “I am pleased to see the latest Spanish renewables auction have shown the positive effects of competition: companies are ready to invest in new installations with very low levels of state support.
“Spain’s transition to a low carbon, environmentally sustainable energy supply is important and this support scheme will help.”
Last year, payments under the scheme totalled €6.4 billion (£5.6bn).