Spain faces the dual challenge of meeting growing housing demand while advancing its decarbonisation goals. To achieve this, it is essential that new urban developments can be connected to the electricity grid in a swift, sufficient, reliable, and secure manner. However, access and connection to the grid has become one of the main obstacles for new housing projects.

This situation threatens not only the achievement of climate targets, but also the country’s ability to address the urgent social need for housing.

In coordination with ASPRIMA, we have identified areas for improvement that would accelerate and strengthen the grid connection process, facilitating progress towards a more sustainable, electrified urban model tailored to the current and future needs of citizens.

A worrying reality: 6.7 GW requested but not connected

In 2024, the urban development sector requested access to 6.7 GW of electricity. This figure demonstrates the sector’s dynamism, but also reveals the saturation of existing infrastructure: many of these projects could not be served or connected.

The reason: lack of capacity in the distribution network or withdrawals due to uncertainty and high process costs. This situation blocks progress towards the goal of building at least 250,000 homes per year.

Electricity networks: an essential condition for sustainable housing

Distribution grids are the backbone of the energy transition. They are also the basic infrastructure needed to enable zero-emission buildings, neighbourhoods connected to renewable systems, and cleaner cities. It is therefore incomprehensible that they continue to be a bottleneck for new residential development.

We believe it is necessary to move forward with key measures such as:

• Greater flexibility in transmission network planning, including more frequent reviews and the possibility of specific adjustments.

• Agile mechanisms to add new positions in substations with available space, without requiring approval from the Council of Ministers.

• Regulatory developments to enable shared connection points and promote the use of underutilised 220 kV connections.

• Publication of capacity maps (Circular 1/2024) to provide transparency on the state of the grid and better guide investment decisions.

But that is not enough: additional measures are needed to accelerate grid access and connection for urban development plans.

The diagnosis is clear and shared. That is why we propose progress in four essential additional lines of action to address the root problem:

• Adjusting the investment cap in distribution.

• Funding grid reinforcements through the system, rather than passing costs onto developers. These investments should be planned in advance and recognised promptly.

• Defining a competitive remuneration model to enable the development of new networks to meet demand. A competitive remuneration model is needed to incentivise the development of networks required for electrification and to connect new demand already requesting access.

• Identifying mature and strategic projects, especially in sectors like urban development, based on public interest criteria.

Reforming the administrative milestones for access and connection requests in urban developments

It is proposed that access and connection permits expire five years after being granted, unless within that time the APS, energisation certificate, or administrative authorisation for operation has been formalised. However, developers could request an extension of up to three years before the five-year deadline, justifying project progress. Additionally, once facilities are handed over by the developer, the allocated capacity would be assigned to the urbanised plots, allowing future users to request or contract supply within three years for low voltage (LV) and five years for medium (MV) and high voltage (HV).

Processing times should be adapted to the current reality of urban planning, with specific procedures for urban development sectors, which have unique characteristics, avoiding duplicated validations in the case of housing delivery.

Unlocking access and connection to the distribution grid to unlock access to housing

Spain needs more housing—housing that is affordable, sustainable, decarbonised, and energy efficient.

Access and connection to the electricity grid must not be a barrier. The measures already taken are a first step, but they remain insufficient.

We seek to contribute to a realistic, ambitious, and operational solution, working alongside the relevant authorities. Only with a stronger, more agile, and well-planned electricity network can economic activity be energised, housing delivery accelerated, and the needs of citizens effectively met.