Spain takes a key step towards the energy transition with the new Royal Decree to strengthen the electricity system

At Edison Next, we are clear that, following the blackout of April 28th, measures must be taken, and we welcome Royal Decree-law 7/2025, which strengthens system supervision, promotes storage and flexibility, and encourages electrification. The recent approval responds decisively to the tensions experienced in the electricity system and introduces concrete measures to facilitate the integration of technologies such as storage, self-consumption, electrification and flexibility. The new decree gives a definitive boost to energy storage by declaring it of public utility when connected to the grid, which streamlines procedures such as expropriations and easements. Furthermore, these measures will reduce processing timeframes and eliminate environmental assessments for projects hybridized with renewables, while also prioritizing their evacuation to the electricity system. Access and connection permits are also made more flexible, and the possibility of obtaining provisional authorization for testing prior to receiving the final permit is included, which will greatly speed up project execution. At Edison Next, we see these changes as a major opportunity to deploy more storage solutions in both standalone installations and hybrid projects — something we were already developing with some of our industrial and public clients, and which will undoubtedly become one of our key lines of action in the coming months. This Decree-law also brings important developments in the area of self-consumption. A new figure, the “Self-Consumption Manager”, is created, allowing third parties to represent consumers in such schemes and facilitating the management of collective installations. Self-consumption arrangements are also expanded, and the permitted distance between generation and consumption for installations of up to 5 MW is increased to 5 kilometers, enabling the development of a large number of new projects. The decree also reinforces the role of storage and other non-fossil flexibility sources in energy planning. At the same time, processing timeframes for repowering projects of up to 25% of the original capacity are cut in half — something we consider fundamental for modernizing existing infrastructure and gaining efficiency without starting from scratch. At Edison Next, we believe these measures will serve as the definitive catalyst for the digitalization and optimization of the electricity system. The regulation also addresses the need to electrify energy consumption, particularly in industrial and energy-intensive sectors. To this end, the support mechanism for electro-intensive industry is reactivated, with an 80% reduction in electricity tolls; procedures for electric vehicle charging installations are simplified; and the use of transmission networks to supply end consumers with distribution functions is permitted. These measures not only reduce barriers, but also align perfectly with our activities in the field of electric mobility and industrial energy efficiency. Finally, the decree strengthens legal certainty in the sector — something that Edison Next Spain had been calling for. The concept of installed capacity is redefined to avoid ambiguities, and authorization procedures are clarified, allowing developers and operators like Edison Next to move forward with greater confidence in our investments. In short, Royal Decree-law 7/2025 lays the foundations for a new and necessary framework that is more agile, coherent and geared towards the rapid deployment of solutions that are fundamental to the energy transition. At Edison Next, we continue and will continue working to ensure that these new opportunities ultimately become real projects that deliver value to our clients and to the system as a whole. Our commitment to making efficiency, flexibility and sustainability a tangible reality across the entire business and public sector remains as firm as ever. Because only in this way can we advance towards a cleaner and more competitive energy model.