GEOENERGÍA unveils its suggestions for the draft royal decree on heating and cooling networks in Spain

The energy transition in Spain takes a major new step with the publication of the draft royal decree regulating urban heating and cooling networks. This project, spearheaded by the ministry in charge of Ecological Transition and the Demographic Challenge, paves the way for a structuring regulatory framework for the expansion of urban heating and cooling solutions, notably through the enhanced integration of renewable energy. GEOENERGÍA, the Spanish geothermal association, presented targeted proposals this autumn aimed at optimizing the impact of the decree on energy efficiency and the massification of thermal networks. These suggestions are based on field experience and international best practices to ensure a homogeneous and sustainable deployment across the entire Spanish territory, while strengthening the strategic role of geothermal energy, particularly through the increased valorization of waste heat. Let us explore in detail the key recommendations and their technical, economic, and environmental scope.

The stakes of the royal decree project for heating and cooling networks in Spain

The draft royal decree introduces new rules specifically regulating heating and cooling networks, essential elements for the decarbonization of buildings and the control of energy consumption. In Spain, the evolution of the regulatory framework aims to facilitate the structuring of a vital sector for renewable energy, namely the heating networks and urban cooling networks. These collective networks allow for the efficient distribution of heat and coolness on an urban scale, often integrating sources like geothermal energy, biomass, and the recovery of surplus thermal energy from industrial or domestic sources.

The key terms in the text emphasize the rise of the so-called "fifth generation" networks, capable of adapting the fluid temperature according to seasonal needs while optimizing the incorporation of renewable energy sources and minimizing heat dissipation into the atmosphere.

GEOENERGÍA emphasizes that this framework also encourages the formal recognition of heating and cooling networks as services of general interest, which would align their legal status with that of other fundamental utilities such as electricity, water, or gas.

In practice, this classification would facilitate access to public infrastructures and land, often a major obstacle in the construction or extension of thermal networks, simplifying administrative procedures and clarifying responsibilities among actors. The royal decree therefore aims to secure the management and financing of projects thanks to this strengthened status.

• Clear and precise definition of urban heat and cooling networks

• Promotion of 5G urban heating technologies

• Regulation of renewable thermal origin guarantees

• Facilitation of access to public infrastructures

• Encouragement of the incorporation of waste heat and local renewable energies

Through these measures, Spain positions itself to achieve its climate objectives by 2030 and beyond, outlined in the European REPowerEU strategy, while supporting innovation and the competitiveness of renewable energy sectors.

GEOENERGÍA's priorities to make the royal decree more effective and coherent

Last September, GEOENERGÍA submitted three major proposals during the public consultation on this draft law, aimed at strengthening the scope and coherence of the regulatory framework. These recommendations seek to remove regulatory obstacles, facilitate the use of renewable energies, and ensure a stable and responsible dynamic in the sector.

Recognition of thermal networks as services of general interest

GEOENERGÍA insists on the importance of officially recognizing heating and cooling networks as services with a public interest vocation. This status, already customary for electricity, hydrocarbons, or water, would allow for a smoother management of usage rights on public and heritage spaces, without resorting to heavy and ill-suited concessions for the nature of the infrastructures.

This legal measure would provide operators with greater legal visibility, essential for attracting investors to long-term projects and across extensive areas. The fundamental issue here is to guarantee a robust and sustainable infrastructure capable of absorbing market fluctuations while remaining independent.

Incentive mechanisms to valorize waste heat

At the same time, GEOENERGÍA recommends implementing a system combining incentives and penalties to maximize the reuse of thermal surpluses from industrial processes or commercial installations. Treating heat dissipation into the atmosphere as a form of energy waste creates a powerful lever to encourage producers and consumers to exploit this underutilized renewable energy source.

Such a device, if technically and economically viable, would significantly improve the overall energy balance of networks, reducing primary consumption and emissions, while optimizing costs for end users.

Exemplary role of public administrations to energize the sector

In its third axis of proposals, GEOENERGÍA calls for entities to prioritize adopting heating and cooling solutions based on renewable energy thermal networks. A firm public commitment would facilitate the structuring of initial demand, essential for launching projects and ensuring economic profitability during the startup phase.

This positioning would also make visible the contribution of institutions to the national decarbonization strategy, thus enhancing the role of localities as catalysts of organizational and technological change.

• Providing a clear and stable legal framework

• Creating financial incentive tools for operators

• Encouraging a policy of environmental responsibility

• Reinforcing territorial cohesion through better coverage of networks

• Promoting multi-technology integration for urban heating

Expected benefits for energy efficiency and reduction of energy dependence in Spain

The strengthened use of urban heating and cooling networks based on renewable energies, notably geothermal energy, represents a pragmatic and proven solution to improve energy efficiency on a large scale. These networks allow for optimized thermal flow distribution, limiting heat losses and favoring recovery and valorization of waste energy.

In Spain, a country experiencing strong growth in the field of thermal networks, the adoption of a clear regulatory framework such as the royal decree will amplify projects utilizing local renewable resources, thereby reducing dependence on imported fossil fuels. The goal is to achieve a more balanced, sustainable, and resilient energy mix in the face of geopolitical and climate unpredictability.

The environmental benefits are significant, with a notable reduction in CO2 emissions associated with heating and cooling, one of the most energy-consuming sectors. The decree will also enhance the competitiveness of the renewable energy sector by encouraging technological innovation, for example, in geothermal heat pump equipment.

• Reduction of fossil energy consumption

• Improvement of air quality in urban areas

• Stimulation of local jobs specialized in geothermal energy

• Creation of a virtuous circle between thermal producers and consumers

• Increased use of residual heat sources

The technical and regulatory challenges for the implementation of the royal decree on urban networks

Although the benefits of heating and cooling networks through geothermal energy are undeniable, their generalization under the royal decree faces significant challenges, both technical and regulatory. The complexity of infrastructures, the diversity of stakeholders, and the need for effective coordination require a flexible yet precise framework.

One of the main obstacles remains the authorization framework for geothermal drilling, involving rigorous permits and technical controls. The recent debate around the reform of the granting of permits for geothermal research shows that despite progress, the procedure sometimes remains cumbersome, slowing the pace of new projects.[source]

Moreover, the certification of drillers has become a major quality issue. The establishment of a clear normative framework guarantees a high level of expertise, preventing drilling defects that could compromise the sealing and durability of the networks.[source]

• Complexity of administrative steps

• High technical standards for the network

• Insufficient financial incentives for certain stakeholders

• Necessary coordination between different levels of local governments

• Adaptation of existing networks to the new regulation

Actions and perspectives to support sustainable development of heating and cooling networks in Spain

To succeed in the development of urban heating and cooling networks within a sustainable dynamic, several complementary levers must be activated. A multi-stakeholder approach is essential to effectively integrate the technical, economic, and environmental dimensions.

Local authorities have a crucial role in supporting projects from their early phases, particularly by facilitating access to public land and coordinating different operators. The upskilling of professionals working on the networks, incorporating the specifics of geothermal energy, is also a key focus.

Furthermore, raising public awareness of the benefits of renewable energies in urban heating systems contributes to creating a strong and legitimate demand. The economic dimension should not be overlooked: the initiation of an incentive framework combining financial aid, subsidies, and technical support will significantly improve the financial feasibility of projects.

• Strengthening specialized training

• Stimulatory financial mechanisms for private actors

• Promotion of territorial consultation

• Transparent communication to users

• Establishment of effective public-private partnerships