Update of the national integrated Energy and Climate Plan 2023-2030

The Government has approved Royal Decree 986/2024, of September 24, approving the update of the National Integrated Energy and Climate Plan, now called 2023-2030 (hereinafter, the “Royal Decree” and “PNIEC 2023-2030”). The reasons for this update are motivated by the fact that the energy landscape has changed significantly and there has been an increase in climate ambition at a national and European level.

The main objectives of the PNIEC 2023-2030 are: (i) job creation; (ii) boosting the competitiveness of the productive fabric; (iii) positioning Spain as a leader in renewable energies and technologies; (iii) development of the rural environment; (iv) improvement of people's health and the environment; and (v) social justice.

The following are the most relevant innovations implemented by the PNIEC 2023-2030:

1. The number of policies and measures envisaged is increased and, for the first time, specific actions are included regarding railroads, aviation and navigation, the demographic challenge, improved integration of renewables with the environment and territory, cybersecurity, local electricity markets, gender perspective and capacity markets, and analysis of the life cycle of buildings, among others.
    
2. A 32% reduction in greenhouse gas emissions is proposed for 2030 and, in addition, an increase in greenhouse gas removals from agricultural and forestry sinks is encouraged, in line with the recently approved regulation.
    
3. The weight of renewables increases to 48% of final energy consumption.
    
4. In the electricity sector, the renewable energy mix rises to 81% in 2030.
    
5. Renewable energies, storage and demand management are driven to improve their integration. By 2030, it is expected to have installed 62 GW of wind power -including 3 GW of offshore wind-, 76 GW of photovoltaic -including 19 GW of self-consumption-, 1.4 GW of biomass and 22.5 GW of storage, also considering the contribution of solar thermoelectric.
    
6. Renewable gases are driven: renewable hydrogen and biogas. Around 12 GW of electrolyzers are planned for 2030 for the production of renewable hydrogen, mainly for industrial uses, and the production of biogas and biomethane is also being increased. The biogas forecast is to reach 20 TWh in 2030.
    
7. Energy independence is increased by reducing foreign energy dependence to 50% by 2030, thus strengthening energy self-sufficiency and having a positive impact on national energy security.
    
8. More levers are incorporated to support the decarbonization of the industry, ensuring its competitiveness at a global level, with energy efficiency, technological innovation, electrification, self-consumption and green hydrogen being fundamental.
    
9. In fact, the new PNIEC 2023-2030 increases the energy efficiency target to 43% by 2030.
    
10. Regarding high efficiency cogeneration, the target cogeneration capacity for 2030 is set at 3,784 MW and 13,475 GWh for gas cogeneration and 849 GWh for cogeneration using oil products. The 1,200 MW cogeneration auctions are also maintained. Once the update methodology has been approved, there are no excuses to implement it.
     
11. Electrification of the economy increases, rising to 35% by 2030, incorporating new projects, greater electrification in the industry, more green hydrogen production, and new demands associated with new services related to digital transformation.
     
12. Measures related to accompanying the transition from a social and territorial point of view are established and reinforced, such as, among others, measures for a renewable development that establishes socioeconomic benefits in the rural environment and for the protection of energy and transportation consumers.
     
13. It deepens on the changes in transportation and mobility, promoting healthier, more collective and inclusive lifestyles.
     
14. Energy rehabilitation is strengthened, increasing the number of rehabilitated homes to 1,377,000.

In short, the PNIEC 2023-2030 raises the ambition for decarbonization and renewable energies in addition to implementing environmental protection measures and socioeconomic opportunities. It will now be necessary to articulate the regulatory mechanisms and incentives required for this purpose.