Spain Unveils €100 Million Initiative to Boost Renewable Energy Recycling

In a bold step toward advancing circular economy practices in the renewable energy sector, Spain has introduced a €100 million (approximately US$117 million) aid initiative aimed at enhancing the recycling and reuse of clean energy system components.

The new programme, named RENOCICLA, is spearheaded by the Ministry for the Ecological Transition and the Demographic Challenge (MITECO). It will support projects focused on repurposing materials from solar panels, lithium-ion batteries, and wind turbine blades, with a strong emphasis on second-life applications and efficient recycling processes.

Funding Breakdown and Strategic Objectives

Of the total funds, €80 million will be directed toward investment in facilities and infrastructure that enable the reuse and recycling of photovoltaic modules, energy storage systems, and wind turbine components. Specifically, solar PV and battery recycling efforts will each receive €30 million in dedicated funding. These investments are part of Spain’s Recovery, Transformation and Resilience Plan (PRTR), backed by the European Union’s NextGenerationEU initiative.

The programme aims to prioritize projects that demonstrate high recycling and reuse rates—ranging from 65% to 85% depending on the specific technology. Particular attention will be given to solutions capable of recovering valuable raw materials, such as lithium from decommissioned batteries.

Innovation and Circular Design

The remaining €20 million in funding will support innovation-driven projects, particularly those focused on the eco-design of renewable energy components. These efforts seek to extend the lifespan, enhance reusability, and improve the recyclability of equipment used in clean energy generation.

Eligible proposals may include industrial R&D initiatives, experimental pilot projects, and feasibility assessments. Projects that integrate secondary raw materials into production processes and significantly reduce waste generation will be especially encouraged.

Application Timeline and Evaluation

Applications for RENOCICLA will be open from July 8 to September 16, 2025. Projects will be assessed based on several criteria, including technical soundness, cost-effectiveness, and the level of innovation.

The Institute for Diversification and Energy Saving (IDAE), which will oversee the programme’s implementation, will host a webinar to present the initiative on Thursday, July 3, from 12:00 to 13:15 CET. Interested parties can visit the IDAE’s official website (Spanish language) for full application details and requirements.

Context and Industry Support

RENOCICLA’s rollout follows closely on the heels of another major funding initiative by MITECO and IDAE, which allocated nearly €300 million to bolster the manufacturing of renewable energy technologies in Spain. Of that, more than €210 million was dedicated specifically to expanding solar PV production capacity.

By pairing manufacturing support with end-of-life recycling strategies, Spain is positioning itself at the forefront of sustainable energy system development in Europe, ensuring that renewable technologies are not only deployed but also responsibly managed throughout their lifecycle.