For more than a decade, electricity customers in Spain have paid monthly bills while the country navigated a unique approach to keeping power reliable. In response to potential supply constraints and market imbalances that could drive higher prices, several dozen large industrial facilities agreed to pause or reduce production during times of risk. This voluntary downtime was part of a broader effort to maintain electricity security without triggering widespread price spikes.
From 2008 through the middle of 2020, major industrial groups reported revenues totaling just over 5.26 billion euros. Data from the former National Energy Commission and the current National Markets and Competition Commission show a mechanism that guarantees these facilities will halt or curb electricity use when a power outage risk or steep price increases loom. This framework was designed to align supply with demand during critical moments while offering a predictable safeguard for the grid.
Two years ago, at the behest of the European Commission, the government ended the biennial auction that distributed subsidies under the program and began planning a new support model. The system has yet to be fully updated. Today, the industrial sector has proposed Admin to recoup downtime services as part of Spain’s contingency strategy. Officials are weighing how such a mechanism could help soften energy costs and reduce industrial consumption, with a plan to present details to Brussels in coming weeks.
During the years the downtime mechanism operated, it primarily benefited large electricity users. Now, industry associations and large energy consumers are seeking to expand the framework to include facilities that rely heavily on natural gas. The Association of Companies with Large Energy Consumption and the Industrial Gas sector have pushed for broader coverage as part of ongoing discussions about energy resilience and cost containment.
Employers representing electro-intensive and gas-intensive users have submitted the proposal to the Ministries of the Ecological Transition and Industry, led by Teresa Ribera and Reyes Maroto respectively. Government sources indicate the idea is being considered as one possible element in a broader package of energy conservation measures, with attention to Russia-related supply pressures. A final decision on inclusion remains pending as authorities assess potential impacts and compliance considerations.
Officials emphasize that the primary goal is to avoid compulsory cuts in supplies to households or industry this coming winter, as part of a wider energy-saving plan. Downtime services do not imply mandatory interruptions; rather, participating companies would voluntarily reduce or suspend consumption in exchange for a bonus. The industrial sector insists that aid should not be treated as a subsidy but as payment for a service that can prove valuable in emergencies during an ongoing energy crisis, benefiting both electricity and gas usage.
Ten Years Without Mandatory Cuts
From 2008 to 2017, when electricity supply and demand faced an imbalance that threatened continuity, the beneficiaries of the program had to stop production for purely technical reasons. Over time, industries accepted downtime with little compulsion, bearing the costs as part of maintaining system reliability. The arrangement was confidential, but insiders indicate that factories typically paused for about five hours annually, excluding periodic system tests, and received roughly 5 billion euros in support overall.
At the end of 2017, the government instructed participant companies to reduce consumption for economic reasons if there was a risk of sharp price increases. In the following years, until the mechanism paused in mid-2020, beneficiary firms carried out more than fifty interruptions motivated by economic considerations aimed at countering volatility in prices. This approach helped smooth short-term spikes and supported grid balance during challenging periods.
The evolving plan reflects a broader effort to align industrial activity with energy security objectives while maintaining competitiveness. As the energy landscape shifts, policymakers continue to evaluate how best to preserve reliable supply, support key industries, and manage costs for consumers across Spain and beyond.