The Spanish Ministry for the Ecological Transition and the Demographic Challenge (MITECO) has approved the framework to award up to 1.2 GW of high-efficiency gas-fired or biomass-fired cogeneration plants, seeking to build new projects or to renovate existing industrial CHP plants (Spanish government press release, 23/06/2026).
- The scheme covers two auctions of 600 MW each in 2026 and 2027 under a specific remuneration regime.
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Natural gas and biomass cogeneration plants will be eligible, representing the first time that biomass-fired plants are included, as well as power plants that consume other fossil fuels that seek reconversion to use either of those fuels.
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Gas-fired units must consume at least 10% renewable hydrogen, while biomass plants will have to comply with sustainability and emissions criteria.
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Projects may not exceed 100 MW (15 MW in non-peninsular systems), while no company will be allowed to secure more than 50% of the auctioned capacity.
According to MITECO, the additional 1.2 GW could avoid around 8.4 MtCO₂ over the regulatory lifetime of the facilities. The measure aligns with Spain’s National Integrated Energy and Climate Plan 2023-2030, which supports both the modernisation of the current cogeneration fleet and the increase of flexibility of the country’s grid.
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