European Court Ruling Prompts Spain to Advance Cogeneration Legislation for Industrial Decarbonisation
The Spanish Association of Cogeneration (Acogen) has called on the government to develop a comprehensive cogeneration law in Spain, following the recent ruling by the European Union Court of Justice (ECJ) which deemed the German model for cogeneration support lawful. This legal affirmation is expected to accelerate legislative efforts and reinforce the country's industrial and energy efficiency strategies.
The ECJ's decision confirms that supporting mechanisms for cogeneration such as Germanys KWKG law do not constitute state aid or distort competition. This verdict endorses that member states have the authority to design and implement support schemes independently, opening pathways for Spain to expand its own support measures without prior EU control.
Acogen highlighted that this ruling effectively validates the regulatory approach of member states, providing confidence to governments and industry stakeholders to enhance existing programmes and explore new incentives for cogeneration. This is particularly critical given Spain's recent initiatives such as a framework for auctions of 1200 megawatts (MW), which anticipates participation from over 200 industrial enterprises, aiming to complete investments within five years.
The association also emphasised ongoing legislative efforts within Spain, including proposals in the Congress aimed at extending the operational lifespan of current cogeneration plants until 2031. These measures seek to prevent irreversible closures and support industrial continuity until new investments become operational.
Javier Rodriguez, Acogens director general, stated that the ECJ ruling clarifies that supporting cogeneration is not a distortion but a recognition of the technologys benefits for industrial competitiveness, system efficiency, and supply security. Such measures ultimately reduce costs for consumers and foster energy resilience.
Furthermore, Acogen has urged the Parliament to urgently approve the extension of transitional support, portrayed as an amendment to the Emissions Trading Law, to enable existing plants to operate until 2031. This safeguard aims to prevent premature closures that could undermine the stability of Spains electricity grid and industrial output.
The sector warns that Spain has lost half of its cogeneration capacity in recent years, negatively impacting grid stability and industrial competitiveness. Maintaining operational plants could have prevented several interruptions in energy-intensive industries and mitigated risks of blackouts.
Regarding future energy auctions, the association projects that the recent framework of 1200 MW will mobilise investments exceeding 2000 million euros, beginning with the first auction scheduled for December 10, 2026. This programme aims to revitalise the cogeneration sector, supporting 400 industries across the food, paper, chemical, ceramic, refining and other industries nationwide.
Overall, the ruling and subsequent legislative initiatives are pivotal in positioning Spain as a leader in industrial decarbonisation, capitalising on cogeneration to boost efficiency, security and economic competitiveness in the transition to a sustainable energy future.