Cogeneration sector awaits publication of new remuneration framework

It is expected that the Spanish government will soon announce the new remuneration that will be applied to cogeneration plants starting in July, a regulation that was already supposed to be approved in May of last year but was delayed due to the negotiation of urgent measures caused by the energy crisis.

The lack of an updated regulatory framework, the decrease in industrial activity, and the exclusion of cogeneration from the compensation for the gas price cap resulted in the sector consuming between 15 and 20 TWh less gas in 2022 and also led to a 29% decrease in electricity production by cogeneration plants this year. However, it is expected that the announcement will substantially improve the situation and avoid the collapse that was predicted starting on July 1st if no changes were made.