Energy

Cogeneration Auctions 2026: 1,200 MW at Stake for Industrial Plants

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Equipo Editorial CambiosLegales
25 Jun 2026 7 min 196 views

Key data

RegulationRoyal Decree 530/2026, of June 24
PublicationJune 25, 2026
Entry into forceJune 26, 2026
Affected partiesIndustrial and energy companies that are owners or promoters of high-efficiency cogeneration installations
CategoryEnergy
Total objective1,200 MW
MechanismCompetitive auctions for specific remuneration scheme
Remuneration parametersWill be set by subsequent ministerial order
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Industrial companies with cogeneration installations have a direct window of opportunity: Royal Decree 530/2026, in force since June 26, 2026, establishes the legal framework for holding competitive auctions that will grant the specific remuneration scheme to high-efficiency cogeneration installations, with a total target of 1,200 MW. Those who fail to prepare to participate leave money on the table.

The regulation does not yet set the specific remuneration amounts or exact auction dates—a subsequent ministerial order will do that, subject to agreement by the Government's Delegated Commission for Economic Affairs—but it does define who can participate, which installations are excluded, and what the power target to be awarded is.

1,200 MW
Total power target to be awarded in auctions
26/06/2026
Entry into force date of the regulatory framework
40%
Maximum generation quota in non-peninsular territories to be eligible
15 MW
Net power limit for installations in non-peninsular territories

What does this regulation establish?

Royal Decree 530/2026 creates the legal framework for convening competitive auctions aimed at awarding the specific remuneration scheme to high-efficiency cogeneration installations. It is not a call itself: it is the "legal architecture" on which specific calls will be built.

The key elements that are already fixed are as follows:

ElementDetail
Eligible installations — newSubgroup a.1.1 (high-efficiency cogeneration) and groups b.6 and b.8 (biomass)
Eligible installations — existingModifications that improve efficiency or change category
Exclusion by territoryInstallations in non-peninsular territories exceeding 40% generation quota
Exclusion by powerInstallations in non-peninsular territories with more than 15 MW net power
Remuneration parametersWill be set by subsequent ministerial order, subject to agreement by the Government's Delegated Commission for Economic Affairs
Auction scheduleWill likewise be set by subsequent ministerial order
Objective of the measureTo respond to European commitments on energy efficiency and emissions reduction; to replace more polluting installations with more efficient ones

The regulation responds to European commitments on energy efficiency and emissions reduction, and its stated objective is to replace more polluting installations with more efficient ones, incentivizing investment through regulated remuneration.

Economic and operational impact

The specific remuneration scheme is, in practice, a guarantee of regulated income for plants that obtain it. Accessing it through auction means competing for an economic supplement that covers the difference between the costs of an efficient installation and market revenues, reducing investment risk.

For industrial companies with cogeneration, the implications are twofold:

  • Income opportunity: Installations that win the auction will obtain regulated remuneration, which improves financial predictability and return on investment in cogeneration.
  • Competitive pressure: As an auction mechanism, the award price is set by competition. Companies with lower costs or more efficient projects will have an advantage.
  • Incentive to modernize: Modifications to existing installations that improve efficiency or change category are also eligible, opening the door to renovation projects without the need to build from scratch.
  • Risk of exclusion: Installations in non-peninsular territories must verify that they do not exceed 40% generation quota or 15 MW net power, or they will be excluded from the process.

The specific remuneration amounts are not yet available: they will be published in the subsequent ministerial order. However, the fact that the framework is already in force allows companies to begin their feasibility analyses and prepare technical documentation.

Who does it affect?

  • Industrial companies that own high-efficiency cogeneration installations (subgroup a.1.1)
  • Promoters of new biomass installations classified in groups b.6 and b.8
  • Companies with existing cogeneration installations planning modifications to improve efficiency or change category
  • Energy companies developing cogeneration projects in peninsular territory
  • Installations in non-peninsular territories that meet the 40% quota and 15 MW net power limits
  • Energy advisors, engineers and consultants working with industrial clients with cogeneration

Practical example

A paper industry company with a high-efficiency cogeneration plant classified in subgroup a.1.1, located on the peninsula, with a power of 8 MW, can participate in upcoming auctions held under this Royal Decree.

If the installation already exists but operates with efficiency below the thresholds required for high efficiency, the company can consider a technical modification that improves its performance and allows it to access the eligible category. That modification also gives the right to participate in the auction.

On the other hand, if that same company had a plant in the Canary Islands with 18 MW of net power, it would be excluded for exceeding the 15 MW limit established for non-peninsular territories, regardless of its efficiency.

The immediate step for this company is to verify its current classification, calculate whether it meets the technical requirements for high efficiency, and watch for the publication of the ministerial order that will set the remuneration parameters and auction schedule.

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What should companies do now?

  1. Verify the installation classification: Check whether the plant is classified in subgroup a.1.1 or in groups b.6 or b.8. If not, evaluate whether a technical modification allows access to that category.
  2. Review exclusion criteria: If the installation is in non-peninsular territory, confirm that it does not exceed 40% generation quota or 15 MW net power.
  3. Prepare technical documentation: Competitive auctions require accrediting the efficiency of the installation. Starting now to gather technical data and certifications reduces time when the call is published.
  4. Monitor the ministerial order: The specific remuneration parameters and auction schedule will be published by subsequent ministerial order, subject to agreement by the Government's Delegated Commission for Economic Affairs. Being alert to that publication is critical to not miss deadlines.
  5. Evaluate the viability of new projects: If the company is considering a new cogeneration or biomass installation, this regulatory framework offers visibility on the available support mechanism. This is the time to advance feasibility studies.

Frequently asked questions

Which installations can participate in the cogeneration auctions of Royal Decree 530/2026?

New installations from subgroup a.1.1 (high-efficiency cogeneration) and groups b.6 and b.8 (biomass) can participate, as well as modifications to existing installations that improve their energy efficiency or change category. Installations in non-peninsular territories that exceed 40% generation quota or have more than 15 MW net power are excluded.

How many MW will be awarded in the cogeneration auctions?

The total target set by Royal Decree 530/2026 is 1,200 MW. The specific distribution among calls will be determined in the subsequent ministerial order that will also set the auction schedule.

When will the remuneration amounts and auction dates be known?

The specific remuneration parameters and auction schedule are not set in Royal Decree 530/2026. They will be published by a subsequent ministerial order, which will require prior agreement by the Government's Delegated Commission for Economic Affairs. The legal framework is already in force as of June 26, 2026.

Can existing cogeneration installations participate or only new ones?

Yes, existing installations can also participate, provided that modifications are made that improve their efficiency or that involve a change of category. It is not necessary to build a new installation to access the specific remuneration scheme.

Why are some installations in non-peninsular territories excluded?

The regulation excludes installations in non-peninsular territories that exceed 40% generation quota or have more than 15 MW net power. This exclusion responds to the particularities of the electrical system in those territories, where the impact of large installations on the grid is different from the peninsular one.

Official source

Consult complete regulation at official source

Notice: 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-2026-13863



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