The Ministry of Energy and the ICO allocate one hundred million euro for efficiency in hospitality, SMEs and large companies. Seventy million will be granted to SMEs and companies in the industrial and commercial sector. The remaining 30 million will be directed towards a “Renewal Plan” in hospitality.
The deadline for requesting the aid of the ICO-IDAE Energy Efficiency 2017-2018 funding line, with a budget of 100 million euro to finance actions to improve energy efficiency in the hotel sector, small and medium-sized enterprises and large companies in the industrial and commercial sector, will open in the next few days.
To implement this financing line, the Ministry of Energy, Tourism and Digital Agenda has signed a collaboration agreement with the Official Credit Institute (ICO for its acronym in Spanish), the agency that will make available funds of up to one hundred million euro to the various financial institutions adhering to the line, so that these entities grant the credits that allow to carry out the efficiency projects.
The agreement foresees that the Institute for Diversification and Energy Savings (IDAE) bear 50% of the risk of the financed operations through the National Energy Efficiency Fund, with the participating financial entities taking over the remaining 50% of the risk, the Ministry of Energy explains in a statement.
One hundred million euro for efficiency
For its part, the ICO has signed an agreement with the European Investment Bank (EIB) to provide funds for the line whose goal is to facilitate financing for investments by SMEs wishing to renew their production processes or, in the case of coffee shops, bars and hotels, their equipment for some more energy-efficient and less polluting ones.
Of the 100 million euro for efficiency, 70 million will be dedicated to SMEs and large companies in the industrial and commercial sector. The remaining 30 million will be allocated to a Renewal Plan in hospitality.
The request for credits must be made through the financial entities adhered to the plan, with the possibility to be grated funding for 100% of the amount of the project investment up to a maximum of three million euro in the case of SMEs and large company of the industrial and commercial sectors. Projects must be implemented within 24 months.
Specific plan for hospitality
This plan, with 30 million euro, has already been endorsed through an agreement between the Ministry of Energy and the Spanish Federation of the Hotel Industry (FEHR), in collaboration with the ICO. The goal is to improve energy efficiency of this sector, key in the Spanish economy and with a high saving potential.
The Renewal Plan (Plan Renove), to be implemented between 2017 and 2018, will be jointly monitored by the IDAE and FEHR in order to boost energy saving measures, create a catalog of energy saving and efficiency measures that can be funded through the ICO-IDAE line, deploy communication, information, promotion, diffusion and technical advice actions, as well as the control and accounting of the energy savings achieved.
“Energy consumption is one of the most significant costs of the hospitality industry, only surpassed by staff costs. Its main elements are air conditioning, cooking, hot domestic water production and lighting,” the statement says.
Faced with the high potential for savings, FEHR will promote actions that improve energy efficiency among its partners – both in training and awareness-raising, as well as in renovation of their energy facilities and equipment – all aimed at reducing their costs and contributing to the transition towards a low-carbon economy.
Access to credits
The funding line promoted by the Ministry of Energy aims to facilitate access to credit for hospitality establishments, that can obtain up to 100% of the project investment for a maximum amount of 1.5 million euro and which shall be carried out within a period not exceeding 12 months.
The following are some of the measures that can be carried out:
-Environmental rehabilitation of the envelope.
-Air conditioning, ventilation and hot water installations improvement.
-Lighting facilities improvement.
-Renovation of cold generation devices and cold rooms.
-Electrical installations improvement.
-Intelligent management systems deployment.
-Renovation of the hospitality and catering equipment and refrigerating furniture for preservation and freezing.
The interested companies and professionals of the hospitality industry should request their aids through the financial institutions that avail themselves of this credit line. Projects must be implemented within 12 months.