The Institute for the Diversification and Saving of Energy (IDAE) is launching a new Investment Strategy for the 2024-2026 period.
With an ambitious framework of 100 million euros, it aims to support innovative projects and startups in the field of energy transition.
In this context, Antonio Vicedo García Rodríguez, Manager of Energy and Environment at Engineering Systems for the Defence of Spain (Isdefe), tells Mobility Portal España:
“I believe this is a magnificent opportunity for any energy transition project that requires investment support from such a prestigious entity as IDAE.”
And he emphasizes: “The goal is not to compete with the private sector, but rather to mobilise it.”
This is in line with the National Integrated Energy and Climate Plan (PNIEC), in whose update highlights the need to support the business and industrial sector in the transformation of the energy model with instruments that allow promoting private investment.
As well as consolidating business models and showing the economic opportunities offered by the transition, so that they can be assumed by the market when public participation is not necessary.
“Although the start is with 100 million euros, I am sure that the mechanism will be successful and will attract more funds,” says Vicedo García Rodríguez.
IDAE’s strategy focuses on supporting a balanced portfolio of technologies, companies and startups with the aim of scaling “in a viable and clear manner.”
The Institute sets a maximum investment limit of 10 million euros per company, with participation ranging between 5 per cent and 20 per cent of the share capital of each firm.
These may not have received any aid from the agency in the last two years or have pending applications for approval in that period.
What does IDAE specifically aim to achieve?
To promote public-private collaboration initiatives related to the transformation of the energy system, in which it can participate through the acquisition of share capital in vehicle companies, including startups.
It is focused on areas such as sustainable mobility, energy efficiency, renewable energy, infrastructure and storage.
What does the eMobility sector think?
The industry has certainly welcomed the announcement with enthusiasm.
Jesús Alijarde , Founding Partner and CEO of Íber Sostenibilidad y Desarrollo and General Manager of the European Photovoltaic Recycling Centre, considers that IDAE’s participation in investing in startups is “very positive”.
Alijarde values the guarantee that IDAE’s participation represents, given that its rigorous auditing processes provide seriousness and solidity to the initiatives.
“At no point does their investment strategy contemplate leading these projects, their role is limited to supporting and accompanying,” Alijarde points out.
Gregorio Serrano López, Senior Advisor of Sustainable Mobility at EY Spain, also welcomes the news.
According to the expert, one of the most notable developments is the amount of the investment, which is not only significant but also “an unprecedented figure” for this type of investment.
“And Spain certainly needs it to accelerate the process of energy transition and the decarbonisation of its economy, with sustainable mobility being a crucial component in this effort,” he says.
Especially to comply with the PNIEC 2021-2030, which seeks a 23 per cent reduction in greenhouse gas emissions compared to 1990.
How will IDAE select projects?
According to Alijarde, the Institute establishes clear criteria that include aspects such as contribution to decarbonisation, gender equality policies, and compliance with environmental and human rights standards.
Projects must undergo rigorous technical and legal audits, ensuring that they align with the objectives of the call.
How can startups’ access to investment be made easier?
“The IDAE has published an expression of interest and, to date, approximately 90 companies have shown their willingness to participate,” Serrano explains.
This will allow us to identify the most promising initiatives in strategic areas of the energy transition, whose proposals must be technically viable and economically profitable.
Flexibility in bureaucracy and ongoing support will be key to facilitating startups’ access to these investments.
“IDAE has simplified the process to allow more companies to submit their proposals without major difficulties,” explains the representative of EY, the firm that offers support to those companies that require it.
