This proposal, which is expected to start operations in 2025, is the first of its kind in Spain, driven by a public-private partnership model, with the Xunta holding 30% of the capital.

Lorenzana defended the creation of the energy retailer as a measure to democratize access to more competitive electricity prices, especially for individuals and small businesses.

“We want everyone, from self-employed workers to large industries, to benefit from lower prices through PPA contracts,” she stated during her visit to the facilities of the society Recursos de Galicia (RDG).

According to the regional minister, unlocking the deployment of renewable energy in Galicia, including marine energy, will be key to expanding the number of beneficiaries.

Sector Criticisms: Is it the role of the Xunta to become a business owner?

Despite the enthusiasm of the Galician government, the creation of RDG Comercializadora Galega de Enerxía has sparked an intense debate within the energy sector.

With more than 800 registered energy retailers in Spain, nearly a hundred of which operate in Galicia, some experts question the need for a public administration to enter and compete in a liberalized market, which aims to promote competition among private players, improving prices and services through innovation.

In this regard, some renewable energy leaders in Galicia believe the involvement of a public retailer could blur this logic.

“The role of the administration should focus on regulating and overseeing the market, protecting consumers, and ensuring transparency, not on becoming another business player,” said a source from the sector in an interview with Energía Estratégica España.

For many, the Xunta would be assuming functions that belong to private companies, potentially diverting its focus from the necessary regulatory oversight in such a competitive and technical market.

Additionally, RDG’s financial model also raises doubts, as while the Xunta holds a 30% stake in the company, the remaining 70% is in the hands of private Galician corporations, which could compromise the entity’s independence.

Critics argue that this could prioritize the interests of the companies over those of the consumers, which conflicts with the social objective of the retailer.

Another aspect questioning RDG’s viability is the low profitability of retailers in the current context.

At a time when public investments need to be careful and strategic, some believe this initiative could “divert resources” that would be more useful in areas like energy storage innovation or promoting the electrification of transportation.

A unique model in Spain, but with challenges ahead

Despite the criticism, Lorenzana insists that RDG is a pioneering initiative in the country and key to the Galician government’s energy policy.

In addition to the retailer, the Galician Natural Resources Law, which will be passed this month, will require developers of projects linked to the region’s natural resources to reinvest part of their profits into the territory, which would facilitate the development of this and other initiatives.

“Our goal is to advance energy autonomy and reduce energy costs for Galician households and businesses,” the regional minister emphasized.

However, the challenges are significant. The sector is cautiously watching the evolution of RDG Comercializadora Galega de Enerxía, a company that, while unique in its format, will have to prove it can successfully operate in an electricity market where competition is fierce and margins are tight.