Spain launches €15 million plan to cut hospitality energy costs

International

Accommodation and food-service businesses can receive grants of between €5,000 and €11,000 to replace outdated equipment with more efficient alternatives

Spain’s Council of Ministers has approved a Royal Decree introducing a €15 million support programme for the renewal of equipment in the hospitality sector. The scheme is designed to help accommodation providers and food-service businesses lower fixed operating costs by replacing older machinery and systems with energy-efficient alternatives.

The grants may cover up to 100 per cent of eligible investment and will be awarded once per establishment. By reducing energy consumption and supporting modernisation, the government aims to strengthen the competitiveness of a sector that plays a central role in Spain’s tourism economy.

Energy costs weigh on hospitality businesses

Hospitality is Spain’s largest tourism-related activity, accounting for around 40 per cent of businesses connected to tourism and 60 per cent of employment in the sector.

Energy expenditure has become one of the main pressures on profitability, particularly for small companies and microbusinesses. According to the government, the current geopolitical environment has intensified these cost pressures and increased the need for immediate investment support.

The programme is intended to deliver short-term savings while helping businesses become more resilient and efficient over the longer term.

Grants support equipment and technology upgrades

Eligible projects include the replacement of electrical appliances and machinery with more efficient models, as well as the renewal of heating, ventilation and air-conditioning systems with lower-consumption alternatives.

Funding may also be used for sustainable materials and digital tools that help businesses monitor and optimise energy use. Equipment powered by fossil fuels, including natural gas, will not qualify for support.

The subsidies will range from €5,000 to €11,000 per establishment and may cover the full amount of eligible expenditure.

Applications open in August

Applications can be submitted from 10 a.m. on 5 August until 3 p.m. on 30 September 2026. The programme may close earlier if the available budget is fully allocated.

Support will be available to individuals, companies, jointly owned businesses and civil-law partnerships operating registered accommodation or food-service establishments in Spain.

The Directorate-General for Tourism Policy will process the applications, while final decisions will be issued by the Secretary of State for Tourism.

Wider benefits for employment and productivity

The government expects the programme to have an impact beyond individual hospitality businesses. Lower energy consumption and more modern equipment should improve productivity, support employment and reinforce the contribution of the sector to Spain’s wider economy.

The initiative also forms part of efforts to move the country’s tourism industry towards a more sustainable and resilient operating model.