1. Developments relating to the electricity sector
1.1 Royal Decree-Law 25/2026 of 29 September, adopting and extending certain measures within the framework of the Comprehensive Plan for Responding to the Crisis in the Middle East
Royal Decree-Law 25/2026 came into force on 1 October 2026, and its ratification was published in the Spanish Official State Gazette (Boletín Oficial del Estado, or BOE) on 20 October 2026. It extends and adapts, for the final quarter of 2026, certain measures set out in Royal Decree-Law 18/2026, which were due to expire on 30 September 2026. It also introduces other structural measures of particular relevance to the energy sector.
Additionally, Royal Decree-Law 25/2026 amends Royal Decree 413/2014, as regards voltage control, so that the configuration required of renewable energy installations contributes to a greater extent to voltage control on the system, with the aim of reducing the need to rely on fossil-fuel power plants.
Other key developments in the energy sector include:
- (a) Public levy applicable to pumped-storage hydropower technology. The twelfth additional provision of Law 13/2003 of 23 May, regulating public works concession contracts, is amended so that developers of pumped-storage hydropower generation facilities declared strategic must pay the affected municipalities an amount equivalent to 3 per cent of the value of the materials, civil works and electromechanical equipment assembly items of the project execution budget. This non-tax public levy becomes payable once the administrative construction authorisation has been obtained and before works commence. If payment is not evidenced, works may not commence and, if commenced, will be suspended.
- (b) Liquefied natural gas (LNG) stocks. The LNG storage obligation under the Winter Action Plan is increased from 16.5 to 21 days for the period from November 2026 to March 2027. A 15 per cent tolerance margin will be allowed for daily compliance with this obligation, provided that the required monthly average is met.
- (c) Penalty regime in the hydrocarbons sector. A specific penalty regime is introduced for breach of the sustainable aviation fuel blending obligations under Regulation (EU) 2023/2405 of the European Parliament and of the Council of 18 October 2023 on ensuring a level playing field for sustainable air transport (ReFuelEU Aviation).
- (d) Energy Saving Certificates (Certificados de Ahorro Energético, or CAE). Articles 79 and 81 of Law 18/2014 of 15 October, adopting urgent measures for growth, competitiveness and efficiency, are amended with the aim of tightening the rules on infringements and penalties within the CAE system.
- (e) Decarbonisation of transport. It is stipulated that the substantive obligations arising from Royal Decree 611/2026 of 22 July, on promoting the decarbonisation of the transport sector and the use of renewable fuels, shall take effect from 31 December 2026.
Finally, Royal Decree-Law 25/2026 extends until 31 December 2026 the reductions in the Hydrocarbons Tax (Impuesto sobre Hidrocarburos) provided for in Royal Decree-Law 7/2026 of 20 March, and subsequently maintained by Royal Decree-Law 18/2026, and provides for safeguard mechanisms in respect of VAT and the Special Electricity Tax (Impuesto Especial sobre la Electricidad) for November and December 2026.
The content of Royal Decree-Law 25/2026 can be accessed here.
1.2 Draft Royal Decree amending Royal Decree 36/2023 of 24 January, establishing a system of Energy Saving Certificates
The Ministry for Ecological Transition and the Demographic Challenge (Ministerio para la Transición Ecológica y el Reto Demográfico, or MITERD) submitted the draft amendment to Royal Decree 36/2023 for public hearing and consultation between 3 and 23 September 2026. The reform aims to update the operation of the CAE system in the light of experience gained and to bring it into line with the new European energy efficiency framework. To this end, it reviews certain procedures and documentation requirements and clarifies the responsibilities of the stakeholders involved. It also lays the foundations for a one-off, exceptional CAE auction system.
The content of the Draft Royal Decree can be accessed here.
2. Developments relating to renewable energy and energy efficiency
2.1 Royal Decree-Law 7/2026 of 20 March, approving the Comprehensive Plan for Responding to the Crisis in the Middle East
This Royal Decree-Law was ratified in March 2026 by the plenary session of the Congress of Deputies, which also agreed to process it as a bill under the urgent procedure. However, the deadline for tabling amendments was repeatedly extended and the bill was never passed. It finally lapsed (caducó) on 6 October 2026 as a result of the calling of a general election. Nevertheless, the lapse only affects its processing as a bill, and Royal Decree-Law 7/2026, which has already been ratified, remains in force.
2.2 Draft Royal Decree to promote biomethane
The legislative process for the Draft Royal Decree on the promotion of biomethane is continuing. The Draft fulfils the mandate set out in Article 26 of Royal Decree-Law 7/2026, and establishes, for the first time, a minimum annual quota for biomethane in sales of natural gas and LNG for uses other than transport (ranging from 0.5 per cent in 2028 to 6 per cent in 2035).
The public hearing and consultation process concluded on 11 June 2026, and the latest development has been the issuance, on 21 July 2026, of the relevant report of the Spanish National Commission for Markets and Competition (Comisión Nacional de los Mercados y la Competencia) (CNMC) (IPN/CNMC/025/26). Among other matters, the report recommends aligning the quota trajectory with the actual availability of biomethane, introducing compliance flexibility mechanisms, configuring the seal of excellence as a voluntary instrument, and including the cost of the quotas in the methodology for calculating the natural gas last-resort tariff (tarifa de último recurso, or TUR). The draft is currently awaiting the opinion of the Council of State (Consejo de Estado), following which it will need to be approved by the Council of Ministers and published in the BOE.
The content of the Draft Royal Decree can be accessed here.
2.3 Wind repowering, industrial self-consumption and administrative simplification
During July and August, MITERD submitted for public consultation a draft Royal Decree amending (i) Royal Decree 1955/2000 of 1 December, regulating electricity transmission, distribution, retail, supply and authorisation procedures for electricity installations, and (ii) Royal Decree 1434/2002 of 27 December, regulating natural gas transmission, distribution, retail, supply and authorisation procedures for natural gas installations. The draft is currently pending approval.
The purpose of this regulation is to enable the release of access capacity at transmission grid nodes reserved for capacity tenders. That capacity would be allocated to the repowering of wind farms (increasing their access capacity by up to 50 per cent) and to renewable self-consumption linked to manufacturing industry. In addition, among other measures, it extends the public information period in proceedings for declarations of public utility (declaración de utilidad pública) from 30 to 45 days, updates the voltage control regime for renewable technologies and requires gas bills to state the origin and environmental impact of the gas supplied.
The content of the Draft Royal Decree can be accessed here.
2.4 Draft Order implementing the renewable fuels certification system (sistema de certificación de combustibles renovables, or SICCRE) and the renewable electricity credit mechanism
MITERD submitted this draft Order for public hearing and consultation between 27 July and 15 September 2026. The draft Order sets out the requirements and conditions for demonstrating compliance with decarbonisation targets in the transport sector. It creates the SICCRE IT platform, which will cover the entire renewable fuels value chain, and defines new categories of renewable fuels according to the different decarbonisation targets. It also regulates the renewable electricity credit (crédito de electricidad renovable, or CER) mechanism, under which credits are generated at the request of operators of publicly accessible charging points, and lays down specific rules for certification in respect of 2027.
The content of the Draft Order can be accessed here.
2.5 Energy efficiency obligations and contributions to the National Energy Efficiency Fund (Fondo Nacional de Eficiencia Energética, or FNEE) for 2027
On 15 October 2026, MITERD opened the public hearing and consultation process, which runs until 6 November 2026, on the draft Order establishing, within the framework of the National Energy Efficiency Obligations System and for 2027, the energy savings target, the energy savings rate, the financial equivalence value and the minimum contribution to the FNEE.
Each obligated party will calculate its obligation on a quarterly basis using its actual cumulative data. At least 5 per cent must be met through contributions to the FNEE, and the remainder may be met through CAE, by 31 March 2028.
The content of the Draft Order can be accessed here.
2.6 Royal Decree 926/2026 of 28 October, regulating certain aspects relating to biofuels, bioliquids and biomass fuels used for energy production, and amending various royal decrees on the subject
Royal Decree 926/2026 of 28 October came into force on 30 October, partially transposing into Spanish law Directive (EU) 2023/2413 as regards forest biomass and biofuels, bioliquids and biomass fuels used for energy production. It introduces the cascading use principle, which gives priority to wood products and their reuse and recycling over bioenergy when designing public support schemes, with a view to ensuring a more efficient use of biomass. In addition, direct financial support for energy produced from saw logs or other excluded categories is prohibited, subject to certain exceptions. Restrictions are also introduced on granting new financial support, or renewing existing support, for electricity-only installations, except in just transition areas, in installations applying carbon dioxide (CO₂) capture and storage, or in the outermost regions. Finally, it amends Royal Decree 413/2014 to require producers to submit a responsible declaration (declaración responsable) stating that the biomass used does not come from saw logs, veneer logs, etc., and introduces an adjustment to the remuneration of producers who fail to meet their accreditation obligations, applicable from 1 January 2027.
The content of Royal Decree 926/2026 can be accessed here.
3. Developments in the hydrocarbons sector
We would highlight the CNMC’s recent approval of the following circulars in the hydrocarbons sector, which set out the remuneration framework for regulated activities in the gas system for the next regulatory period:
- (a) Circular 4/2026 establishing the methodology for determining the remuneration of natural gas transmission facilities and LNG plants. The content can be accessed here.
- (b) Circular 5/2026 establishing the financial remuneration rate applicable to regasification, transmission and technical system management activities, and to activities relating to the distribution of natural gas during the 2027–2032 regulatory period. The content can be accessed here.
- (c) Circular 6/2026 establishing the methodology for the remuneration of the natural gas distribution activity. The content can be accessed here.
Ashurst Perkins Coie note: With regard to sections 1.2, 2.2, 2.3, 2.4 and 2.5 above, please note that the final approval and content of these draft regulations could be affected by the outcome of the general election to be held on 29 November 2026.
