The Spanish Association of Cogeneration (Acogen) has urged the Government to advance in the development of the Cogeneration Law in Spain. It demands that parliamentary initiatives currently being processed in the Congress of Deputies be prioritized to extend the activity of the plants in operation, following the recent ruling of the Court of Justice of the European Union (CJEU), which concludes that the German sector regulation does not constitute state aid.
In a statement, the employers' association explained that European cogeneration celebrates the support of the high community court, which last July endorsed the financing mechanism for cogeneration in Germany - the KWKG Law. The CJEU confirms that it is not a public subsidy nor does it create distortions in the market, thus settling the conflict between the European Commission and the German federal government.
Acogen emphasized that this ruling demonstrates that member states have full capacity to configure support schemes for cogeneration without subjecting them to prior control from Brussels, which allows for the reinforcement and expansion of existing compensations.
According to the association, the scope of the CJEU ruling goes beyond the German case and takes on special importance for Spain, where a bidding scheme for 1,200 megawatts (MW) has recently been approved, in which the participation of more than 200 industries is expected. These companies must complete the associated investments within a maximum period of five years.
In parallel, Acogen recalled that proposals aimed at extending the useful life of cogenerations in operation until 2031 are being processed in the Congress of Deputies, with the goal of avoiding definitive closures before the new investments are executed.
The general director of Acogen, Javier Rodríguez, emphasized that, with its ruling, the European court reaffirms that "supporting cogeneration is not distorting competition."
"The regulated remuneration of cogeneration is not state aid, but compensation for the benefits that this technology brings to industrial competitiveness, to the efficiency of energy systems, and to supply security, which results in lower costs for consumers," he added.
They demand urgent approval of the extension of plant operations
The association also called on the Congress of Deputies to urgently give the green light to the extension of the transitional measure included as an amendment in the processing of the Emissions Trading Law. This modification would allow facilities whose regulatory useful life expires to continue operating until 2031, avoiding their closure before the new investments come into service.
In this context, the cogeneration sector warned that Spain has lost around half of its electricity generation capacity through cogeneration in recent years, which, it claims, is negatively affecting both the stability of the electrical system and the competitiveness of industrial plants.
Rodríguez pointed out that if these facilities had continued operating, the electrical system would not have been forced to resort to shutting down electro-intensive industry up to five times this year to avoid blackout risks.
More than 2 billion in new investments and transformation of the park
In relation to the new energy auctions, whose framework of 1,200 MW was approved on July 4 after five years without calls, the association estimates that an investment of over 2 billion euros will be activated starting from the first auction, scheduled for December 10, 2026.
This new investment cycle will allow for the modernization and renewal of the national cogeneration park, used by about 400 industries in the food, paper, chemical, ceramic, refining sectors, and others spread throughout the Spanish geography.