Rewrite of Cogeneration Policy and Market Reactivation in Spain

End date Saturday October 1 and its provisions came into effect, shaping the landscape of cogeneration plants in Spain. Cogeneration refers to facilities that produce both heat and electricity from gas and sell surplus power to the market, a mechanism often described as the Iberian exception. The measure, announced by Prime Minister Pedro Sánchez at the start of September during debates on austerity legislation in the Crown, Senate, and related committees, aims to reactivate hundreds of stalled plants over the last four months due to elevated gas prices. About half of the total plants in Spain took advantage of this mechanism, yet only a third of those that had halted operations were able to restart, with results varying by industry. Another third are expected to resume in the coming weeks, while the remainder would require a new regulatory framework, as highlighted by industry voices at the XVIII Annual Cogeneration Congress held recently in Madrid. [Source: Spanish Cogeneration Association]