The Council of Ministers has today authorized the Ministry of Industry, Trade and Tourism to carry out the call 2023 of the mechanism for compensation of costs of indirect emissions of greenhouse gases in the amount of 244 million euros for the costs of the year 2022 of the autonomous communities.
“This aid shows the government’s commitment to the electro-intensive industrial sectors and makes it possible to improve their competitiveness, strengthen their industrial capacities and employment. The uncertainty caused by the war is generating tensions in global value chains and an increase in energy prices that is affecting the industry. This aid guarantees a competitive energy price and has positive impacts on energy efficiency and the fight against climate change,” said the Minister of Industry, Trade and Tourism, Reyes Maroto.
More than 29 million euros mobilized for Cantabria
During the period 2018-2022, Cantabria accumulates an aid of 29,156,894 euros for 48 production plants, which reflects the government’s commitment to strengthen the competitiveness and employment of the electrointensive industrial sector. In total, the Government has mobilized 662,223,379 euros in this matter for 960 facilities throughout Spain since 2018.
Maroto recalled that “since we came to the Government in 2018, more than 662 million euros have been mobilized that have benefited a total of 960 production plants throughout the national territory. This has been possible thanks to the support that the Ministry of Industry is offering to the electrointensive industrial sectors, going from a budget of 6 million in 2018 to 244 million in 2022.”
More instruments to support the electro-intensive industry
Likewise, the Government has already allocated 3,027,971 euros to 15 facilities in Cantabria in aid to electrointensive consumers, within the framework of the Mechanism for Compensation to Electrointensive Consumers. In total, since the implementation of this mechanism, public aid amounting to 103,078,181 euros has been granted for 662 installations throughout Spain.
The Mechanism for Compensation to Electrointensive Consumers of charges for the financing of specific remuneration for renewables and high efficiency cogeneration and for additional financing in non-peninsular territories, regulated in Title III of Royal Decree 1106/2020, which regulates the Statute of Electrointensive Consumers, is one of the new instruments launched by the Ministry of Industry in support of the electrointensive sectors.
In addition, in 2021 a new coverage program was launched to support electrointensive consumer companies to access energy through medium or long-term sales contracts (PPAs). CESCE’s coverage covers the risk of non-payment of PPP by the energy buyer. Throughout 2022, the first three applications have been analyzed and approved.
Finally, the electro-intensive sectors are benefiting from a set of measures that are part of the various aid packages to cushion the impact of the war in Ukraine, among which the following stand out:
- The Iberian mechanism that is operational until May 2023 and applies a cap to the price of gas used to generate electricity, to lower the price of light and thus moderate its rise.
- The extension until June 30, 2023 of the 80% reduction in tolls for electrointensive consumers, to continue guaranteeing the competitiveness of this industry.
- The extension throughout 2023 of the reduction of electricity VAT and the special tax on electricity and the temporary suspension of the tax on the value of electricity production is maintained, so that electricity producers can continue to offer more competitive prices.
About CO2 Compensation Mechanism
The European Commission allows each Member State to offset the indirect costs of industries in certain sectors or subsectors that are considered to be exposed to a significant risk of “carbon leakage”, due to the costs related to greenhouse gas emissions reflected in electricity prices.
The final amount of the aid, for each beneficiary, shall be calculated taking into account the actual production and electricity consumption in the year 2022 including the capacity increases and the production decreases that have taken place.