Spain calls for an auction of 650 MW of cogeneration, but reserves only two blocks for biomass

The Ministry for Ecological Transition and the Demographic Challenge (MITECO) published the call for the first high-efficiency cogeneration auction in Spain, with 650 MW at stake and a distribution that maintains the predominance of natural gas over biomass .

Of the ten planned blocks, eight will be for gas-fired power plants, totaling 505 MW, while biomass will only have two slots, for a total of 145 MW . This means that renewable energy will account for 22.3% of the offered capacity, compared to 77.7% reserved for fossil fuels.

However, the resolution incorporates a modification with respect to the proposal submitted to public information: the biomass quota increases from 95 to 145 MW , which explains why the total power of the call goes from the 600 MW initially proposed to 650 MW.

The auction will be held on February 23, 2027 , and will award the specific remuneration scheme to both new power plants and modifications of existing facilities. It falls under Royal Decree 530/2026 and Order TED/672/2026, which establish the conditions for renewing 1,200 MW of industrial cogeneration capacity.

Two blocks for biomass and up to five years to execute the projects

How will the renewable energy quotas be distributed? The call for bids includes two products of 50 and 95 MW for biomass , while the eight corresponding to natural gas will have volumes between 2 and 210 MW.

The Iberian Electricity Market Operator (OMIE) will administer the procedure under the supervision of the National Commission for Markets and Competition (CNMC).

The winning companies will have 60 months to build new facilities or complete modifications to biomass plants , while the deadline will be 48 months for the remaining modifications.

The submission of documentation will begin on the next working day in the Community of Madrid after the publication of the resolution in the Official State Gazette (BOE).

Environmental requirements and openness to renewable hydrogen

The scheme also introduces technical conditions for accessing the remuneration. Participating facilities cannot exceed 100 MW of power, a limit that is reduced to 15 MW in non-peninsular electrical systems.

In addition, they must demonstrate primary energy savings of more than 10% , except for plants of less than 1 MW, for which it will be sufficient to demonstrate positive savings.

In the case of natural gas, projects will have to be prepared to consume at least 10% renewable hydrogen and respect an emissions limit of 270 grams of CO₂ per kWh.

For their part, biomass facilities must comply with the sustainability and emissions reduction criteria established in current regulations .