At the end of September, the Spanish government approved a draft bill to reinstate the National Energy Commission (CNE). Within this framework, the Association of Electric Energy Companies (AELEC) emphasized that the commission’s focus must be on electric grids and on encouraging investments in these through effective remuneration models.

Ensuring a Grid Ready for the Energy Transition

Marina Serrano, president of AELEC, stated that without an adequate model, integrating the growing renewable energy generation into Spain’s energy system will be challenging.

“Grid remuneration must be adjusted to ensure the necessary investments and allow electric grids to facilitate this energy transition,” Serrano told Energía Estratégica España.

The new regulatory period for electric grids will begin in 2026. AELEC has stressed the importance of preparing a remuneration model that incentivizes investments, sets an appropriate financial return rate, and establishes regulatory oversight for both the electricity and gas sectors.

“The remuneration of the grids is crucial to ensure they are well-prepared to handle increasing demand from decarbonizing sectors, which require greater electrical capacity. Stable investment signals and guaranteed returns are essential, and this responsibility lies with the regulator,” Serrano said, noting this should be among the first measures adopted.

Access and Connection Challenges

Serrano added that the new commission must also focus on improving access and connection capacity to grids for both generation and demand.

Although recent regulations, such as the circular on demand access and connection, have been approved, Serrano stated that “technical specifications are still needed” to integrate more renewable energy and storage systems effectively.

The CNE must also adapt detailed regulatory measures to achieve the 81% renewable generation target by 2030, as outlined in the Integrated National Energy and Climate Plan (PNIEC).

“It must drive regulations related to demand growth, storage, demand management, and self-consumption. A key element in this model with intermittent energy sources and empowered consumers is ensuring mechanisms for firmness and flexibility to guarantee supply security and efficient grid use,” Serrano explained.

“This detailed micro-regulation is the regulator’s responsibility. For instance, determining when capacity is firm, when it is flexible, and how it is structured. The regulator must act decisively to implement these measures, paving the way for a decentralized and decarbonized model,” she added.

Storage and Green Hydrogen

Energy Storage
Storage will play a pivotal role in ensuring system flexibility, particularly as intermittent sources like wind and solar increase.
“Storage needs a regulatory framework that provides clear signals to investors and defines capacity mechanisms to ensure profitability,” Serrano emphasized.

She also noted the need for detailed specifications to connect storage systems, which could be required for firm or flexible capacity to store excess energy and prevent curtailment during periods of high renewable output and low demand.

Green Hydrogen
Serrano highlighted green hydrogen as a critical vector for decarbonization, particularly in industries where direct electrification is not viable.

“Green hydrogen production must replace gray hydrogen, and regulation must coordinate the electricity and gas sectors to achieve this,” she stated.

Renewable gases such as biomethane also play a crucial role in the transition. AELEC underscored the importance of incorporating the latest renewable gas directive into Spanish law and working on detailed regulation to ensure its proper use.

Structural Challenges in the Energy System

Spain’s energy system faces the challenge of balancing energy supply and demand. Serrano stressed the need to incentivize demand, particularly in sectors like transportation and industry that still rely heavily on fossil fuels.

“Storage and electrification of key sectors will be crucial to absorbing the growing supply of clean energy,” she said, emphasizing the need for clear policies to decarbonize and electrify the most emission-intensive sectors.

She also called for fiscal policies that promote clean energy use.
“It’s vital for fiscal policies to penalize CO₂ emissions and provide clear incentives for electric vehicles and other sustainable technologies,” she explained.

“Electricity currently has three to four times more taxes than fossil fuels. Let’s encourage consumers by taxing emissions and supporting non-emitting alternatives. Let’s send appropriate signals for electric vehicles and heat pumps,” Serrano added.

Proposals for the Reinstated CNE

The reinstatement of the CNE addresses the need for a specialized energy sector regulator. This decision reverses the 2013 merger with the CNMC, aiming to emulate other European countries with independent regulators focused solely on the energy market.

Serrano emphasized the importance of this change to provide Spain with an entity dedicated exclusively to energy matters.
“It is essential for the CNE not only to oversee the efficient functioning of markets but also to have a clear mandate to promote decarbonization and meet PNIEC goals,” she explained.

AELEC has submitted proposals for the bill, calling for adequate resources for the CNE to effectively fulfill its responsibilities and functions.

“We’ve also pointed out that the CNE must have the ability to define its internal structure. A rigid organizational framework under the law would hinder its ability to adapt to new technologies or fuels, creating unnecessary bottlenecks. The regulator must be empowered to decide its internal structure to adapt to innovation,” Serrano clarified.

The reinstatement of the CNE, combined with its expanded mandate, presents an opportunity for Spain to accelerate its energy transition and establish regulatory frameworks that align with European and global goals. By focusing on storage, grid development, and renewable integration, the CNE can play a pivotal role in achieving a sustainable and decarbonized energy system