Politics

Spain separates remuneration for biomass combined heat and power from pure electricity generation

Orden TED/1152/2026 (published in the Boletín Oficial del Estado on 2 November 2026) differentiates for the first time the quarterly adjustment of the retribución a la operación for biomass plants with combined heat and power from that for biomass power stations generating electricity only.

Briefing

The government has, through Orden TED/1152/2026 of 27 October 2026, clarified the methodology for updating the operating remuneration of electricity generation plants whose operating costs depend substantially on fuel prices. The order was published in the Boletín Oficial del Estado on 2 November 2026 and came into force upon publication. It amends the previously applicable Orden TED/526/2024 of 31 May 2024.

The key change is the clear distinction between biomass-only power plants and facilities that generate electricity and usable heat together. A newly added article separately regulates retribución a la operación for biomass combined heat and power. For facilities that generate electricity and heat together, typical revenue and cost components are recorded separately, so that remuneration better reflects these facilities’ specific economic structure. The methodology provides specific formulas for calculating the values quarterly in euros per megawatt hour.

The periodic update will remain quarterly; the values in force will in future be set by resolution of the Secretaría de Estado de Energía The Ministerio de Hacienda will be notified in advance as part of the procedure. The new parameters will apply from the first calendar day of each quarter (1 January, 1 April, 1 July, 1 October). The Orden does not set permanent remuneration rates or change the rules for tenders; it defines the calculation method and the procedure for periodic adjustments.

The Ministerio para la Transición Ecológica y el Reto Demográfico places the adjustment within the framework of the Plan Nacional Integrado de Energía y Clima 2023–2030 For operators of biomass-based facilities, the distinction means that their remuneration will in future be more closely linked to the combined revenue and cost position for electricity and usable heat. Reliable statements about individual financial effects will only be possible after the first quarterly resolutions of the Secretaría de Estado de Energía are announced, as these will set the specific parameters for retribución a la operación.

Editor: Phillipe Schmidt-Araguin (Article created with AI assistance).

Sources

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