Spain Earmarks €368 Million in EU Funds for Public Sector Energy Overhaul

Spain’s Ministry for the Ecological Transition and the Demographic Challenge (Miteco) will allocate €368 million to 173 projects designed to improve energy efficiency within the General State Administration (AGE). The aid is sourced from European Union funds through the ERDF Pluriregional Program for 2021-2027.

The initiatives are part of a total investment of €586 million and are projected to deliver energy savings of nearly 80,000 megawatt-hours (MWh), equivalent to the consumption of more than 8,000 households. This will prevent the emission of over 24,000 tons of CO2 annually.

“We understand that the Administration must have an exemplary role in the design of measures and projects, and we will continue working to decarbonize the state public sector,” said Sara Aagesen, Deputy Prime Minister and Minister for the Ecological Transition, during the announcement on Monday.

Projects were selected through a competitive process, prioritizing comprehensive actions that maximize energy savings, integrate innovative technologies, and provide environmental and socioeconomic benefits. The allocation also ensures a balanced distribution among ministries and territories, with a specific focus on municipalities with fewer than 5,000 inhabitants. These smaller towns will receive €77 million for 23 projects to refurbish 142,818 square meters. Notable investments include €23 million and €21.8 million for the energy retrofitting of penitentiary centers in Teixerio and A Lama, respectively, in Galicia.

The highest-scoring projects included comprehensive refurbishments of large buildings with a strong investment-to-savings ratio. Top-rated proposals were for the Civil Guard building in the port of Santurtzi (Bizkaia), the annex to the Gran Telescopio Canarias in Garafía (La Palma), and the courts in Ocaña (Toledo).

The Ministry of the Interior leads with 85 selected projects, primarily for Police and Civil Guard barracks. It is followed by the Ministry of Science, Innovation and Universities with 32 projects, including the Gran Telescopio de Canarias and the National Center for Genomic Analysis. The Ministry of Finance has 22 projects for various provincial headquarters, and the Ministry of Transport and Sustainable Mobility has 18, involving port authorities in Barcelona, Bilbao, Huelva, Seville, and Avilés.

Among the autonomous communities, Andalusia is set to receive the largest share of ERDF funds with €173 million, followed by Galicia (€39 million), Castilla y León (€30 million), and the Valencian Community (€28 million). Castilla-La Mancha (€21 million), the Canary Islands (€19 million), and Extremadura (€19 million) will also receive significant funding.

Miteco Leads by Example

In its effort to set a precedent, Miteco is undertaking Madrid’s largest geothermal project at its own headquarters. The 1.2-megawatt (MW) thermal power installation is financed with €4.3 million from the Recovery, Transformation and Resilience Plan (PRTR).

“This work symbolizes a change of model. A model that leaves behind dependence on imported fossil fuels and relies on local, accessible resources, such as the constant temperature of the subsoil,” Aagesen explained. “Because the solution for clean, cheap, and secure energy is not thousands of kilometers away; it is here, under our feet. This Ministry headquarters will be a tangible example of that transformation. Because it is not enough to legislate: the energy transition also begins in our own home.”

The geothermal installation involves drilling 106 wells up to 150 meters deep, which will become operational in April. The system will almost completely replace fuel oil for heating, electrifying and reducing total energy consumption for climate control. It is also expected to save up to one million liters of water consumed by cooling towers.

By leveraging the constant temperature of the ground for heating in winter and cooling in summer, the system offers far greater efficiency than traditional methods, with minimal CO2 emissions and 24-hour availability. The geothermal wells, located in the parking area, will be covered with permeable paving instead of asphalt to promote rainwater filtration.

The energy overhaul is scheduled for completion in June of this year. It is projected to cut emissions by more than 50% and reduce non-renewable energy consumption by over 50%. The building’s energy rating is expected to improve from D to C for non-renewable primary energy consumption and from D to B for CO2 emissions.