Requirements and obligations for Electro-Intensive Consumers in Spain. Network charge exemption, sustainability measures and energy efficiency.
Context and recent changes
Gas prices have moderated against the levels reached a year ago, but remain above their historical average, feeding through to electricity prices and hitting electro-intensive industry particularly hard. International uncertainty persists, limiting how far ahead companies can see their own activity.
Against that backdrop, the Council of Ministers approved on Tuesday an extension to 31 December of the 80% exemption on electricity network charges that electro-intensive companies have benefited from since 1 January 2022. The measure comes with a provision allowing the 2022 electricity system surplus to be carried over into 2023, which funds it without any budgetary cost and without increasing consumers' bills.
What is required to qualify as an electro-intensive consumer?
- Holding one of the CNAE activity codes listed in the royal decree, available at: https://www.boe.es/eli/es/rd/2023/06/13/444.
- Having consumed more than 1 GWh in at least two of the previous three years.
- Having consumed 46% of that energy in the off-peak tariff period in at least two of the previous three years. This 46% off-peak requirement does not apply while the exceptional production cost adjustment mechanism for reducing wholesale electricity prices, set out in Royal Decree-Law 10/2022, remains in force.
- Meeting a ratio above 0.25 kWh/€ between electricity consumption and the company's gross value added (in at least 2 of the previous 3 years).
What obligations come with the support?
Electro-intensive consumers taking up any of the mechanisms regulated in the royal decree, and to whom Royal Decree 56/2016 applies, are required to:
a) Improve energy performance
Implement, at least every four years and at each installation certified as electro-intensive, the energy performance improvements identified in the most recent energy audit of the Energy Management System referred to above — provided they are economically viable and the investment costs are proportionate.
b) Invest in emissions reduction
Invest at least 50% of the support received in projects that deliver substantial reductions in the installation's greenhouse gas emissions.
c) Renewable energy and carbon footprint
Reduce the carbon footprint of their electricity consumption, so that at least 30% of the installation's electricity comes from renewable sources, excluding the national mix. Compliance is evidenced through forward instruments, direct or indirect, via guarantees of origin, through investment in renewable self-consumption installations, or through comparable investments or measures.
Reporting and compliance obligations
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For at least three years after receiving the support — or, where applicable, after taking up the mechanism established for electro-intensive consumers — and before 30 April each year, the consumer must submit a detailed report to the Directorate-General for Energy Policy and Mines and to the competent regional energy authority where the installation is located. The report must cover the energy efficiency measures implemented, a breakdown of electricity and fuel consumption, relevant production figures, and electricity and thermal consumption ratios per unit of product.
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On PPAs (Power Purchase Agreements), the portion of renewable energy that qualifies as hourly self-consumed energy under Royal Decree 244/2019 of 5 April may be taken into account. This must be evidenced within three years.
Application deadline
Applications and supporting documentation must be submitted within 20 working days, counted from the day after the call summary is published in the Official State Gazette.
Questions about electro-intensive consumer status?
If you are unsure whether your company can benefit from this support, or what the process involves, get in touch at info@grupotrebolenergia.es.
We will be glad to help.
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