Industrial consumers with flexible energy consumption will be able to receive a fixed monthly payment for making firm power available to the electricity system. Order TED/966/2026 establishes the capacity market. It will operate through auctions in €/MW, with commitments ranging from 1 to 10 years and availability for a maximum of 10% of the year's hours. The first auction date has not yet been set.
On September 17, Order TED/966/2026 was published in the Official State Gazette (BOE) , establishing the capacity market for the Spanish peninsular electricity system. This mechanism opens a new revenue stream for industrial consumers with flexible power demand who can commit a portion of their consumption as firm power for the system.
What is the capacity market?
The capacity market serves to ensure that there is sufficient power available in the electrical system during times of system stress, that is, situations of high demand or lower availability of renewable generation.
For an industrial consumer , participation involves making a certain amount of firm power available to the grid. In practice, this means committing a capacity to reduce consumption, which is considered available when the system needs to guarantee its supply.
How can I participate and who can do it?
• Competitive auctionsParticipants offer MW of power at a price in €/MW.
• RetributionThe successful bidders receive a fixed monthly amount during the service provision period.
• Participants: end consumers, generation and storage facilities, and certain demand and production aggregators.
• Availability obligation: during system stress hours, which will not exceed 10% of the hours in the year, and under the conditions defined by the operating procedure.
The annual cost of the market will be financed by electricity retailers, who will pass it on to end consumers, and by direct consumers in the market.
How long does the commitment last?
For demand-side facilities, the order provides for three types of auction :
• Main AuctionsThe service period ranges from 1 to 10 years, at the participant's choice. Generally, the service will begin no later than five years after the award.
• Adjustment auctionsThey are annual, with a benefit period of 12 months.
• Temporary auctionsThey are extraordinary and cover the needs of the system until the first service period of the main auction begins.
When will the first auction take place?
The order establishes the regulatory framework, but the date of the first auction will depend on the call for bids. That call will define, among other things:
• The date and schedule of the auction.
• The firm power required.
• The firmness coefficients.
• The benefit periods.
• The applicable rules.
Benefits for the industrial consumer
A company with genuine flexibility can:
• Obtain additional income from the awarded firm power.
• Monetizing a capacity to reduce consumption that does not necessarily generate specific income today.
• Diversify the income associated with the energy management of the facility.
• Contribute to security of supply and the integration of more renewables.
• To make the implementation of storage systems, such as batteries, more cost-effective.
What to consider before participating
Participation also involves obligations:
• It is necessary to determine precisely what power can be committed as firm. This depends on the installation's consumption profile, its flexibility capacity, and the technical conditions ultimately established by the operating procedure.
• The committed power must be kept available according to the service conditions and will be subject to verification and compliance mechanisms.
• Failure to meet availability obligations may affect remuneration and involve penalties or financial adjustments.
Before submitting an offer, we recommend reviewing these points:
1. The schedule profile of the installation's consumption.
2. The power which could be considered firm.
3. The Economic cost and operational to commit that power.
4. The minimal price to which it would be interesting to make an offer.
5. The operating procedures, still pending publication, which will detail the technical and operational requirements to qualify as a service provider.
6. The participation in the SRADProgramming units that provide the active demand response service may not participate simultaneously in other balancing services.
The capacity market transforms consumption flexibility into an asset with a stable return. However, before submitting a bid, it is essential to rigorously analyze the capacity that can be committed and the risk of penalties. You can consult the full text of Order TED/966/2026 in the Official State Gazette (BOE).
Want to know if your facility is eligible? At Exclusivas Energéticas, we closely monitor the development of this market and can help you assess your flexibility potential. Contact us.