In a context where energy decarbonization is essential to combat climate change and reduce dependence on fossil fuels, the report prepared by the Electrification Commission of ENTRA Aggregation and Flexibility highlights that electrification, along with the development of advanced electrical networks, are key pillars to achieving the 2050 climate goals. These elements are fundamental to ensuring a sustainable energy transition in key sectors such as transportation, industry, and households.

According to the 2024 National Integrated Energy and Climate Plan (PNIEC), direct electrification is expected to account for 32.8% of final consumption in Spain by 2030. While significant, this figure falls short of the European target of 35% and the 60% required by 2050.

The Commission stresses the need for additional measures to close this gap, focusing on the incorporation of technologies such as heat pumps, energy storage, and electric vehicles. These solutions not only offer efficiency and emissions reductions but also boost energy independence.

Carolina Vereda, leader of the Electrification Commission, emphasizes that “the growth of demand through electrification is the key lever to meet the PNIEC goals, and it must be our priority.”

As emphasized in the report, enabling this electrification requires at least two things: first, providing the right incentives to motivate consumers, both domestic and industrial, to manage their energy consumption habits; and second, having a distribution network capable of providing access to consumers when they decide to electrify their consumption.

The challenge of industrial access to the grid

The report identifies that the lack of capacity in electrical infrastructures limits not only competitiveness but also the ability of companies to adapt to a more sustainable model. It proposes a restructuring of the investment model in electrical networks, prioritizing proactive strategic planning and the implementation of flexibility mechanisms such as local markets.

Industry, considered a key pillar of the Spanish economy, faces increasing limitations in connecting new facilities to the electrical grid in industrial zones. According to Vereda, “The limitation of access to the electrical grid in industrial zones has become a serious obstacle to the electrification of industry in Spain.”

The document also points out that the current capacity of electrical networks is insufficient to integrate the growing demand and renewable energy generation.

In this regard, the current investment model in networks, based on organic growth, is outdated. A proactive strategy is proposed, combining anticipatory investments and flexibility mechanisms such as local markets and flexible access.

Additionally, while the PNIEC foresees an investment of 52 billion euros in networks by 2030, it urges prioritizing digitalization, observability, and optimization to maximize the impact of these investments and facilitate the energy transition.

Solutions to move forward

The report suggests various actions to boost electrification, such as fiscal incentives: direct grants and tax deductions for behind-the-meter storage, both for individuals (in VAT and/or income tax) and for businesses (in corporate tax), as well as specific financing programs to overcome these barriers.

Among the measures highlighted are CO₂ auctions for industry, along with tax deduction schemes and support for high-efficiency technologies such as heat pumps and energy and thermal storage.

“With adequate infrastructure and policies aligned with European goals, Spain can not only lead the energy transition but also strengthen its long-term industrial competitiveness,” says Alicia Carrasco, Executive Director of ENTRA Aggregation and Flexibility.

[Full report available]