Electrical Grid Plan 2021-2026: €615M in investments for large industrial consumers

Key data

Electrical flows on the South-Center-North axis have grown unexpectedly, forcing the system operator to activate gas combined cycles to manage technical restrictions. This has a direct cost: more gas, more emissions, and a more expensive electrical system for everyone. To break this cycle, the Council of Ministers approved on July 28, 2026 the third targeted amendment to the Development Plan for the Electrical Energy Transport Network 2021-2026, published in the BOE on August 8, 2026.

The proposal was favorably reported by the CNMC and submitted for consultation by the autonomous communities before its final approval.

What does this regulation establish?

This is the third targeted amendment to the 2021-2026 Plan, originally approved by Council of Ministers Agreement of March 22, 2022. The two previous amendments already adjusted aspects of the plan; this third one specifically addresses the problem of South-Center-North flows.

The approved equipment and actions are as follows:

All these investments are framed within the remuneration limits of Royal Decree 1047/2013, which regulates electrical energy transport activity. Part of the financing can be channeled through the Recovery, Transformation and Resilience Plan (Next Generation EU funds).

Economic and operational impact

The problem that motivates this investment has a real and measurable cost: when the network cannot manage electrical flows with its own means, the system operator (Red Eléctrica de España) activates gas combined cycles. This forced dispatch increases the wholesale market price and generates additional CO₂ emissions that the electrical system should not produce.

The approved actions seek to eliminate —or significantly reduce— the need to resort to gas to resolve technical restrictions. The expected impact is:

• Reduction of technical restriction costs in the electrical market, which affects the final energy price.
• Lower natural gas consumption in combined cycles activated by restrictions, with the consequent reduction of CO₂ emissions.
• Greater voltage stability in the transport network, especially in the South-Center-North corridor.
• Renewal of critical equipment that reduces the risk of unscheduled supply interruptions.

The investment of €615 million is financed within the regulated remuneration framework of RD 1047/2013, which means its cost is recovered through network access tolls paid by all electrical consumers. Part can be financed with European funds from the Recovery Plan, which would ease pressure on tolls.

Who does it affect?

• Red Eléctrica de España (REE): as the system operator and transport network manager, it is the direct executor of the approved investments.
• Large industrial consumers: companies with high consumption connected to the transport network or high voltage that benefit from greater stability and lower interruption risk.
• Distribution companies: electrical distribution companies that receive energy from the transport network and pass it on to end consumers.
• Combined cycle operators: may see reduced forced activation due to technical restrictions, which affects their income from this concept.
• Electrical consumers in general: in the long term, the reduction of technical restrictions should translate into lower costs in the wholesale market.

Practical example

A steel sector industrial plant located in central Spain, connected to the transport network in high voltage, has suffered in recent months episodes of unstable voltage and frequency variations associated with South-Center-North flows. These episodes force the plant to activate its protection systems, causing unscheduled shutdowns with an estimated cost of tens of thousands of euros per incident.

With the installation of the 4 e-STATCOM and the 20 new 100-150 MVAr reactances approved in this amendment, Red Eléctrica strengthens the voltage control capacity in that corridor. The expected result for that industrial plant is a reduction in instability episodes and, therefore, fewer unscheduled shutdowns and lower operational costs associated with network restrictions.

Additionally, if part of the €615M is financed with Recovery Plan funds instead of being fully passed on to tolls, the impact on that industrial plant's electricity bill would be less than what would correspond to an investment financed exclusively through regulated tariffs.

What should companies do now?

1. Evaluate your exposure to technical restrictions: if your company is connected to the transport network in high voltage or in areas of the South-Center-North corridor, analyze whether you have suffered instability episodes that could be reduced with these investments.
2. Review your supply and toll contracts: REE investments are recovered via regulated tolls. Anticipate possible adjustments in network access charges in the coming tariff years.
3. Consult European financing opportunities: if your company participates in energy efficiency or renewable projects connected to the network, verify if the Recovery Plan funds associated with this amendment open relevant calls.
4. Coordinate with your energy manager or market advisor: the reduction of technical restrictions can affect wholesale market prices and forward energy contracts. Update your energy cost forecasts.
5. Follow REE's execution schedule: the approved actions have execution deadlines within the 2026 horizon. Monitor progress to anticipate improvements in supply quality in your area.

Official source

Consult complete regulation in 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-2026-17368