The decline of cogeneration in Spain: The struggles of Neoelectra and the industry

For decades, cogeneration was a vital component of the Spanish energy landscape, serving as a highly efficient method to generate both electricity and heat within key industries such as pulp and paper, ceramics, chemicals, and food processing. At its peak, this technology commanded up to 15 per cent of the national electric power mix, demonstrating its importance in fostering industrial energy efficiency and sustainability.

However, recent years have seen a dramatic decline, with the industry experiencing what can only be described as a form of cogenicidio – a virtual genocide of cogeneration capacity. This decline is significantly impacting industrial competitiveness and the countrys overall efforts towards decarbonisation. The story of Neoelectra exemplifies this crisis, as one of the leading players in the sector now faces existential threats. Its CEO, Antonio Cortes, openly shares the severe financial and emotional toll that the decline of his business is taking on him personally.

Antonio Cortes describes decades of struggle, sleepless nights, and the encroaching sense that the business he built is dying piece by piece. His testimony reveals a broader industry suffering from neglect and policy failures that have accelerated the decline of cogeneration facilities across Spain. Accompanying him is Javier Rodriguez, general director of Acogen, one of the main associations advocating for cogeneration. Rodriguez highlights how political and regulatory changes in recent years have led to the abandonment of industrial cogeneration, leaving many facilities offline and industries vulnerable.

The data describing this decline paints a stark picture. Industry experts warn that the situation creates a sense of being drowned at the shoreline after years of fighting for survival. The decline of cogeneration is not accidental but appears to be a consequence of deliberate policy shifts and regulatory barriers. This has led to a situation where many industrial plants are forced to close or reduce their output, exacerbating Spains challenges in achieving its climate and energy security targets.

As the story unfolds through the voices of Cortes and Rodriguez, it becomes clear that the repercussions extend beyond mere economics; they threaten the sustainability of the industrial fabric and the nations progress toward decarbonisation. The decline of cogeneration reflects a broader neglect of integrated energy policies that could have supported a cleaner, more efficient industrial sector.

Addressing this crisis requires immediate policy intervention, support for existing cogeneration infrastructure, and a renewed commitment to industry-led sustainability initiatives. Without concerted efforts, Spain risks losing a crucial technology that could play a key role in its decarbonisation pathway, leaving industries to face higher emissions and reduced competitiveness in a rapidly evolving global economy.