The General Directorate of Operation of Red Eléctrica published the information prior to the auction of the Active Demand Response Service (SRAD) corresponding to the first half of 2026, following the approval by the CNMC of the new Operation Procedure PO7.5 and the modification of PO14.4 on rights and obligations for system adjustment services.
The service must be provided between January 1 and June 30, 2026. The active demand response requirement amounts to 2,339 MW , with an estimated 22 activation orders (44 time periods) during the semester. In total, 2,279 service time periods are planned .
The auction will be held on Friday, November 28, 2025 , and the final results will be available before 2:00 p.m. on the same day, once any possible claims have been resolved.
The SRAD (System for Revenue Management) becomes an essential tool for improving system flexibility management and fostering a more efficient and decarbonized model. If the changes to schedules and technical criteria are confirmed, it could mark a turning point in competition between retailers and aggregators , as well as in the flexibility strategy of the entire Iberian Peninsula’s electricity system.
Industry sources consulted by Strategic Energy Europe warn that the defined schedules differ from those contemplated in the prior public consultation , which could exclude potential suppliers who had planned their participation based on the initial design.
They also point out that the minimum power per unit and the aggregation conditions have not been made public , two key aspects for defining who can act as Balance Service Providers (BSPs) . The original draft suggested that only retailers could offer the service, although this condition has not yet been confirmed.
The call for caution remains in light of the possibility of further modifications, including the controversial section that proposes only activating up to 50% of the 20% of the power committed to the service, which in practice restricts the operating margin and effective remuneration of suppliers. Its final interpretation could have significant economic impacts on market participation and the efficiency of the balancing market.
Until Red Eléctrica publishes the final procedure and participation guidelines , market participants recommend proceeding with caution and not assuming conditions that have not yet been formally validated. The authorization process is scheduled to close on November 21 , with applications accepted until November 18 , leaving little room for maneuver for new entrants.
Since its first pilot call in 2022, the mechanism has sought to encourage the participation of large consumers and independent aggregators , allowing them to offer temporary reductions in demand as an alternative to generation.
In the 2024 tender, the awarded capacity was close to 2,300 MW , with a weighted average award price of approximately €95/MWh , representing a total estimated cost of around €60 million for the electricity system. This benchmark value allowed for a comparison of the SRAD product’s efficiency against other adjustment mechanisms, revealing a downward trend compared to 2023 and reinforcing the service’s competitiveness.
At the European level, Spain has been a pioneer in developing an active demand response scheme with specific auctions, following the French model of capacity mechanisms and the flexibility programs implemented in Italy and the United Kingdom . However, the country faces the challenge of harmonizing national regulations with EU frameworks , especially regarding independent aggregation and access for industrial consumers.
