The Institute, which is part of the Secretary of State for Energy, is looking for public-private collaboration initiatives linked to the transformation of the energy system in which it can participate by acquiring share capital in special-purpose vehicles, including start-ups.

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IDAE

The Institute for Energy Diversification and Saving (IDAE), which reports to the Ministry for Ecological Transition and the Demographic Challenge (MITECO), is activating an allocation of 100 million euros from the General State Budget and the Recovery Plan (PRTR) to invest, as a minority partner, in emerging business projects involving innovative technological solutions, start-ups or useful business models within the overall process of decarbonisation of the Spanish economy. To this end, it is launching a non-binding invitation to identify the most promising initiatives in strategic areas of the energy transition to facilitate their activation and commercial consolidation.

This was announced by Teresa Ribera, Vice-President of the Government and Minister for Ecological Transition and the Demographic Challenge in Brussels: “Today we are opening for public information an Expression of Interest on the IDAE’s major strategic investment axes. We have 100 million euros for the IDAE to become a shareholder in new vectors and new energy solutions. As a public company, it has always had the vocation to be a shareholder as well as a promoter of the most ground-breaking ventures, and we believe that there is a lot of wealth and entrepreneurship that we want to bring to light: new technologies, new services”.

DIRECT PARTICIPATION AS A PRIORITY
Thanks to this allocation, the Institute will be able to acquire shares in the share capital of companies, start-ups, SPVs or newly created companies involved in cutting-edge projects in sustainable mobility, renewable technologies, hydrogen, infrastructure, storage and flexibility of the electricity system, efficiency, the industrial value chain and the circular economy, as priority areas. Exceptionally, the IDAE may also assess other instruments such as loans or equity loans.

The IDAE’s participation in the share capital of the selected projects will always be a minority shareholding, indicatively between 5% and 20% and up to 10 million euros per project. Technically viable and economically profitable proposals will be sought, for investments to be made under market conditions. The criteria that the IDAE will take into account to analyse these proposals and assess, where appropriate, the investment, can be consulted on the Investment Strategy website.

All interested parties can now send their projects for study to the following specific IDAE mailbox: inversiones@idae.es.

MOBILISING PRIVATE INVESTMENT
The IDAE’s Investment Strategy 2024-2026 seeks to consolidate the IDAE’s investment role, in line with the Strategic Energy and Climate Framework. In its update, the PNIEC stresses the need to accompany the business and industrial sector in the transformation of the energy model with instruments to mobilise private investment, consolidate business models and demonstrate the economic opportunities offered by the transition, so that they can be taken up by the market when public participation is not necessary.

In this context, public-private co-investment mechanisms are necessary to complement the granting of aid to achieve this investment mobilisation and contribute to the consolidation of the industrial and business fabric throughout the value chain.

A detailed study of the needs of private agents, channelling and access to additional sources of financing, participation through minority positions in companies, etc. are all necessary public actions, especially in emerging branches of activity with unconsolidated companies and technologies, where the risk-or the perception of such risk – does not make them attractive for private investment in the absence of this accompanying framework.

PIONEER IN RENEWABLE INVESTMENTS
As a public business entity, since the 1980s the IDAE has invested in pioneering renewable technology projects and contributed to accelerating their maturity, scalability and commercial viability. In particular, the Institute played a leading role in the development of wind power in the country with equity stakes in some of the first wind farms, as well as in the refurbishment and construction of mini-hydro plants, cogeneration plants and photovoltaic deployment.

It currently participates in 25 companies under different public-private partnership formulas or together with other public entities. In addition to traditional projects, in the last two decades, it has incorporated other more evolved profiles, such as demand management and microfinance start-ups for innovative projects in the energy transition, renewable hydrogen projects or R&D&I developments such as the marine energy testing platform.