The European Commission has approved, under EU State aid rules, a €3 billion Spanish scheme to support research, development and innovation, as well as environmental protection and energy efficiency measures of companies in the value chain for electric and connected vehicles.
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The measure will help Spain to accelerate the transition towards a more sustainable and connected mobility, without unduly distorting competition. The scheme will be partly funded by the Recovery and Resilience Facility (‘RRF'), following the Commission's positive assessment of the Spanish Recovery and Resilience Plan and its adoption by the Council.
The Spanish scheme enables aid for investments, and aid for investments into environmental protection, including energy efficiency, for the implementation of several integrated projects across the entire value chain for electric and connected vehicles, within the framework of the Strategic Project for the Economy Recovery and Transformation on electric and connected vehicles (‘ECV PERTE').[1]
It will run until the end of 2023 and is open to consortia of interested companies, established both in and outside of Spain. Each consortium will include companies active in a wide range of sectors related to electric and connected vehicles, and at least 40% of the partners will be small and medium sized enterprise (SMEs). The aid will be awarded through a competitive selection process and will take the form of direct grants and soft senior loans.
In particular, the Commission found that:
the scheme is necessary to facilitate investments as well as the environmental protection investment efforts of companies, such as energy efficiency measures, in the supply chain for electric and connected vehicles.
It also has an incentive effect, as the projects would not take place in the absence of public support;
the aid is proportionate and limited to the minimum necessary. In particular, the eligible projects, eligible costs and maximum aid intensities are defined in line with the RDIF and EEAG;
necessary safeguards to limit any undue negative effects are in place. In particular, the maximum amount of aid for a single beneficiary will be limited; appropriate participation of SMEs in the scheme will be guaranteed; and participating companies have to demonstrate that the aid amounts requested are limited to the minimum necessary; and
the positive effects of the measure, in particular on the environment, the integrity of the European Research Area for the value chain and the recovery of the Spanish economy, outweigh any negative effects in terms of possible distortions of competition. Indeed, the scheme will help Spain meet its environmental targets, set at European and national level, and supports the digital transition, as it fosters investments into the connectivity of electric vehicles.
Finally, Spain also committed to carry out an ex post evaluation to assess the effects of the scheme. ■