Spanish Government Implements Policy Measures to Prevent Network Hoarding for Demand Flexibility
The Spanish Government has introduced a comprehensive set of measures aimed at counteracting network hoarding for demand in the electricity sector. These measures seek to improve transparency, optimise network utilisation and facilitate genuine investment in electrification projects. The initiative responds to recent trends where access to infrastructure has been congested due to speculative capacity hoarding by project developers.
Over the past years, significant investor interest has surged in large-scale projects linked to industry decarbonisation, renewable fuel production, data centres for artificial intelligence, electric mobility and energy storage. Countries well positioned for such a transition including Spain have benefited from abundant and competitive renewable energy sources. However, the procedural framework for network access, governed by Law 24/2013, Royal Decree 1183/2020 and Circular 1/2024, has inadvertently facilitated capacity hoarding through a first-come, first-served system. This passive allocation approach has led to around 90 percent of network access capacity being reserved but not utilised, creating administrative congestion and hindering new infrastructure development.
To address these issues, the Ministry for Ecological Transition has incorporated new strategic measures into Royal Decree 7/2026. These include implementing upfront payment schemes and introducing capacity reservation charges from the point demand permits are granted until activity commences. These payments are designed as partial pre-payments of network tolls and are linked to the power levels set by the National Commission of Markets and Competition. The objective is to ensure that capacity is only reserved by projects with a clear intention to proceed, thus encouraging real utilisation and enabling other projects to access utilised infrastructure.
Additionally, the current guarantee system for demand permits is being phased out through a transitional regime, replaced by a focus on project milestones: payment of 10 percent of the network position within 12 months, signing of a project assignment contract within three years and completion of the technical access agreement within four years. These milestones act as proof of life markers, allowing capacity to be released progressively without waiting for expiry, accelerating the deployment of demand projects essential for economic electrification.
The regulation also mandates that demand and generation projects specify their activity using the Common Activity Classification Code CNAE. This requirement aims to prevent strategic or opportunistic capacity hoarding by misusing demand permits to block infrastructure for marginal gains. Furthermore, the introduction of flexible grid access options aims to utilise network capacity more efficiently by allowing adaptable consumption and energy storage solutions to connect under explicit network availability conditions.
Prioritisation mechanisms have been enhanced for high-importance sectors such as housing and public services, along with policies to streamline demand auctions. These reforms clarify capacity reservation rules, eligibility criteria for participation and the conditions under which reserve capacity can be allocated for storage and demand-side flexibility. Overall, the regulations are designed to foster a more transparent, predictable and strategically aligned approach to infrastructure access, aligning with national goals of industrial decarbonisation and energy transition.