Plans by Spain’s National Commission on Markets and Competition (CNMC) to increase the guaranteed return on investments in the country’s power grids has been described as insufficient to retain capital within the country by the utilities lobby group, Aelec.
In April 2025, a significant blackout affecting both Spain and Portugal brought renewed attention to the need for substantial investment in the nation's electrical infrastructure.
The CNMC is planning to increase guaranteed return on investments to 6.46% in response to demands for greater incentives following the blackout, as reported by Reuters.
The stability and adequacy of returns on such investments have become central concerns.
Investors receive a fixed return of 5.58% from their investment in Spanish power grids, a cost ultimately borne by consumers through their electricity bills.
Although CNMC’s proposal represents an increase, Aelec insists that a more competitive rate of 7.5% would align with what is offered internationally.
Aelec head of regulation Marta Castro stated: "We run the risk of capital flight and investment being attracted away from Spain to other European Union countries, thereby jeopardising the implementation of investments for the energy transition.”
The updated remuneration rates will apply from 2026 until 2031, and stakeholders can submit their feedback on the proposal until 4 August 2025.
Spanish grid operator, REE (Redeia) oversees the main transmission network and implements government-directed investments.
Iberdrola and Endesa manage local distribution grids that deliver electricity directly to consumers.
In recent years, energy companies such as Iberdrola and Enel have intensified efforts towards enhancing and expanding electrical grids while adopting more discerning strategies regarding renewable energy projects.
In June 2025, the CNMC updated the power grid regulations following the April blackout.
The revised guidelines standardise the framework for services rendered by renewable energy sources alongside traditional power generation facilities.
