ACOGEN and COGEN España have submitted to the Ministry for the Ecological Transition and the Demographic Challenge (MITERD) the results of a comprehensive sectoral survey conducted in June, confirming firm interest from industries in participating in the planned 1,200 MW cogeneration auctions for 2025, 2026 and 2027.

The survey results show that 82 industrial plants totalling 1,224 MW are considering taking part, mobilising over €1.3 billion in investment to ensure the success of upcoming cogeneration tenders. 

However, they warn that participation is at risk if new self-consumption and energy efficiency requirements—considered discriminatory by many firms—are introduced. 

Cogeneration industries are calling for an urgent response and for the agreed schedule to be honoured.

Cogenerators eager to reverse the energy and industrial decline

Over the past five years, electricity generation in cogeneration industries has fallen by 45%, dropping from 12% of the power mix in 2019 to just 6% in 2024. 

This decline represents an estimated annual energy waste of 14 TWh—equivalent to 4% of national gas consumption—an increase in CO₂ emissions by 3 million tonnes, and a €1.5 billion annual reduction in industrial energy revenues.

While countries like Germany and Italy produce four to five times more electricity from cogeneration than Spain, national policies have sidelined this crucial technology for security of supply, competitiveness, efficiency and industrial decarbonisation. To date, there is no alternative technology offering equivalent competitiveness for heat-intensive industries.

The upcoming 1,200 MW cogeneration auction, under regulatory processing since March and delayed for over three years since MITERD’s original announcement, is vital to reversing industrial decline and aligning the energy system with industrial needs.

Expected participation and investment climate

Cogeneration remains the most effective tool for efficiency, competitiveness and energy transition in heat-intensive sectors such as food, paper, chemicals, ceramics, automotive, among others.

According to the survey, 58% of cogeneration industries intend to participate in the auctions, representing 82 facilities and over 1,224 MW. 

The investments will be mostly (82%) in existing gas plants—adapted for future use of hydrogen and renewable gases—15% in biomass installations, and just 3% in new facilities. The estimated investment exceeds €1.3 billion, aligning with MITERD criteria.

Nevertheless, the overall investment climate is uncertain: 45% of companies view it as unfavourable, compared to 37% who consider it positive and 15% who view it as neutral. These companies account for 20% of Spain’s industrial GDP and support 200,000 jobs.

Regulatory risk: new requirements could exclude 60% of industries

The proposals submitted by MITERD for public consultation in March—which include new mandatory self-consumption rules and a 50% increase in efficiency requirements compared to EU standards—could exclude over half of interested companies, particularly SMEs.

The survey reveals that 92% of facilities deem it very important to maintain current operation options (grid sales and self-consumption). Imposing new self-consumption limitations could exclude 57% of companies, representing 36% of planned capacity, with a disproportionate impact on SMEs (60% of the sector).

Furthermore, 50% of industries admit they would not be able to meet the new efficiency standards or would face severe difficulties—criteria that are unique to Spain and not aligned with EU countries, placing them at a serious disadvantage compared to European competitors.

Urgent call: trust, timeline, and a stable framework

Cogenerators are urging MITERD to finalise the regulatory process quickly without introducing new restrictions. They call for confidence, clarity and a confirmed schedule for the tenders to allow for investment planning.

Spain’s Third Vice President and Minister for the Ecological Transition and the Demographic Challenge, Sara Aagesen, and the Secretary of State for Energy, Joan Groizard, have publicly reaffirmed their commitment to ensuring the auction framework is completed this year and the first tender takes place in 2025.

After more than three years of waiting, the industries insist that the time to act is now. Cogeneration offers a robust path to sustainable decarbonisation of production processes, combining efficiency, technological hybridisation, and future use of renewable gases. Its revival is key to building a more competitive, export-oriented, sustainable Spanish industry with high-quality jobs.