The European Commission has approved a €9 billion capacity mechanism to secure Spain’s electricity supply for the next decade. The measure, notified by Spain, will run for ten years from May 2026 and aims to guarantee sufficient capacity for production, storage or flexible consumption to meet expected demand. Under the mechanism, the transmission system operator will remunerate all capacity required to meet a reliability standard based on Spain’s national resource adequacy assessment approved by ACER. Eligible projects include generation, demand‑side response and storage that meet environmental criteria, and will be selected through transparent, non‑discriminatory auctions. The annual budget is estimated at about €900 million, totalling roughly €9 billion. The Commission found the aid necessary, proportionate and in line with EU electricity rules, and approved it under Article 107(3)(c) of the TFEU.
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