Biomass and biofuels 2026: what changes for energy producers

Key data

Forest biomass power plants operating under the specific remuneration regime face a change of rules without a grace period: the Royal Decree 926/2026, in force since October 29, 2026, closes the door to new subsidies and requires a review of compliance with sustainability criteria for a much broader spectrum of installations. The regulation transposes the Directive (EU) 2023/2413 and directly modifies Royal Decrees 413/2014 and 376/2022.

What does this regulation establish?

Royal Decree 926/2026 introduces four major operational changes that installation holders must know:

1. Cascade use principle

Biomass must be prioritized for material uses (manufacturing, industry) before energy production. This is not a recommendation: it is a regulatory principle that conditions eligibility for aid and access to the specific remuneration regime.

2. Prohibition of new aid to forest biomass power plants

It is prohibited to grant new aid or renew existing aid for power installations that use exclusively forest biomass. The only recognized exceptions are:

• Installations located in outermost regions
• Installations in just transition zones
• Installations incorporating CO2 capture technology

3. Reduction of sustainability threshold: from 20 MW to 7.5 MW

Until now, only installations with solid biomass fuels with a nominal thermal power equal to or greater than 20 MW had to demonstrate sustainability criteria. With the new decree, that threshold drops to 7.5 MW. All plants between 7.5 MW and 20 MW are now subject to these requirements.

4. Strengthening of GHG emission reduction criteria

The thresholds for greenhouse gas reduction are tightened, which vary depending on three combined variables:

• Installation power
• Date of entry into operation
• Installation age

Regulatory comparison: before and after

Economic and operational impact

The most immediate impact is the loss of access to the specific remuneration regime for forest biomass power plants that do not fit into the three exceptions. For many operators, this means the disappearance of the remuneration supplement that makes the installation economically viable.

The second impact, less visible but equally relevant, is the cost of certification and accreditation of sustainability for plants that now fall in the 7.5-20 MW range. These installations must implement verification systems for sustainability criteria and GHG reduction that were not previously required, with the consequent administrative, technical, and potentially external audit costs.

Installations with CO2 capture are in a favorable position: they are the only type of forest biomass power plant that maintains access to aid without geographic restriction.

Who does it affect?

• Holders of power plants using exclusively forest biomass: lose access to new aid and renewals, except for exceptions.
• Operators of solid biomass installations between 7.5 MW and 20 MW: are now subject for the first time to sustainability criteria.
• Biofuel and bioliquid producers: affected by strengthened GHG reduction criteria and the cascade use principle.
• Installations under specific remuneration regime (RD 413/2014): must review their situation in light of the modifications introduced.
• Installations in just transition zones or outermost regions: maintain access to aid, but must demonstrate that they meet the exception requirements.
• Plants with CO2 capture technology: are the only ones that maintain full access to aid without geographic restriction.

Practical example

A company holding a cogeneration power plant with forest biomass of 12 MW of nominal thermal power, located in a peninsular region without just transition zone classification, faces this scenario:

• Before RD 926/2026: was not required to demonstrate sustainability criteria (for being below 20 MW) and could opt to renew its specific remuneration regime.
• After RD 926/2026: is subject to sustainability criteria (for exceeding 7.5 MW) and cannot access new aid or renew existing aid, as it does not fit into any of the three exceptions.

The company must immediately begin the sustainability accreditation process and review the economic viability of the installation without the remuneration supplement.

What should companies do now?

1. Identify the nominal thermal power of each installation: if it is between 7.5 MW and 20 MW, the installation is now subject to sustainability criteria that did not previously apply. Act immediately.
2. Review if the installation uses exclusively forest biomass: if so, verify if it fits into one of the three exceptions (outermost region, just transition zone, CO2 capture). If not, it will not be able to access new aid or renew existing aid.
3. Audit compliance with new GHG reduction thresholds: criteria are now differentiated by power, date of entry into operation, and age. Commission a technical review to determine if the installation meets the applicable threshold.
4. Review contracts and remuneration expectations: modifications to RD 413/2014 and RD 376/2022 may alter the specific remuneration regime in force. Consult with an advisor specialized in energy regulation.
5. Evaluate the viability of cascade use: if available biomass has alternative material uses, analyze whether the energy business model remains viable under the new regulatory principle.
6. Document the applicable exception if applicable: installations in just transition zones or outermost regions must prepare documentation that proves their geographic situation to maintain access to aid.

Official source

Consult complete regulation in official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-22615