The Spanish government has created the National Energy Efficiency Fund (NFEE), cofinanced by the EU. Its aim is to invest in projects that reduce energy consumption in the production and installation sector. The fund will start off with EUR 350 million each year from the European structural funds that correspond to the Spanish government. The Spanish government will provide 35% of the endowment fund; the rest will come from settlements under the system of obligations, revenue generated from auctioning the allowances and budget appropriations, if applicable.

The NFEE will invest in energy efficiency in buildings, transport, industry, services and agriculture.

The following plans are expected to be adopted:

• Plan for saving energy and reducing emissions in tertiary sector buildings
• Plan for improving equipment technology and industrial processes
• Plan for increasing energy efficiency of means of transport
• Plan for increasing energy efficiency in agrarian developments and agricultural machinery

The funds will be dedicated to energy efficiency for buildings intended for residential use and nonresidential use. This plan is supposed to create an investment of approximately EUR 832 million.

The Ministry of Industry, Tourism and Commerce, and the Institute for Energy Diversification and Saving (IDAE) have approved the Integrated National Energy and Climate Plans (INECP) covering 2021 to 2030. It establishes the objective of reducing greenhouse gas emissions by 23% compared to 1990 and for 74% of energy to come from renewable sources. This Plan is already in force.

The aim of the IDAE, which is a public body dependent on the Spanish Ministry of Industry, Tourism and Trade, is to promote energy efficiency and strategies for energy saving. Investment is one of the IDAE’s strategic action lines. The way in which the IDAE takes part in projects depends on the circumstances of each specific case, the sector concerned, the technology involved and the turnover. This statement is substantiated by the following:

• Fondo JESSICA-F.I.D.A.E.: This is a fund investing in energy efficiency and renewable energy projects.
• PAREER program: This is a program for the energy rehabilitation of buildings in the residential sector.
• Biomcasa II program: This is a program investing in biomass thermal projects in buildings.
• Grandes Instalaciones Termicas (GIT) program: This program provides financing to qualified firms for large thermal installations from renewable sources in the building sector. It was launched in response to the need to boost the implementation of large thermal energy production installations in the building sector through the use of renewable energies, such as biomass, solar thermal and geothermal energies.
• Third-party finance: This is one of the most suitable mechanisms available to undertake investment projects in energy saving and efficiency and energy generation using various sources, including renewable energies. The IDAE, the main promoter of this financing mechanism in Spain, has been using it successfully since 1987.
• Project finance and provision of services: This financing mechanism applies to projects investing in energy saving, energy efficiency and renewable energy sources that have undergone a prior economic/technical feasibility analysis. It is a new model of financial collaboration that entails drawing up and signing two agreements: a framework collaboration and service agreement and a project finance agreement (i.e., a business loan).
• Other ways that the IDAE can participate in energy projects: This includes joint ventures, economic interest groupings, shares in corporations, share accounts and technology development agreements.