Spain profile

Overview

In 2021, the climate corrected final energy consumption in Spain, excluding non-energy uses, amounted to 79.1 Mtoe, 8.2% higher than the consumption in 2020, in a scenario marked by the progressive normalization and recovery of the post-COVID-19 economic activity. Transport continues to be the most consuming sector with 38.4% of consumption. The buildings -residential and services- sector accounts for 31.9% of consumption, of which 59.2% corresponds to households. Industry makes up 25.7% of demand, showing a continuous decline both in terms of demand and contribution to GDP, in line with the expansion of the services sector in the economy.

According to the ODEX index, the global energy efficiency has improved by 1.4%/year from 2000 to 2021. The residential sector presents the greatest progress (+2.0%/year), induced by technological and legislative developments in building and equipment, to which is added the effect of the rehabilitation of existing homes. Next is industry (+1.5%/year), although an important part of its improvement happened before the 2008 crisis. Further behind are transport (+1.2%/year) and the services sector (+0.9%/year). Starting in 2014, the pace of improvement in the first two sectors loses momentum compared to the last two ones, whose progress is reinforced under the impact of the pandemic, and its subsequent recovery, recording improvements over 1.5%/year between 2019 and 2021.

The National Integrated Energy and Climate Plan 2021-2030 (Spanish NECP), submitted on 31 March 2020, to the EC, is a planning instrument originating in Regulation (EU) 2018/1999 on Energy and Climate Governance. The Plan assumes an efficiency improvement target of 39.5% in 2030, equivalent to a primary energy consumption (Art.3, EED) of 98.5 Mtoe (non-energy uses excluded). Likewise, it establishes a binding target for cumulative final energy savings of 36.8 Mtoe between 2021 and 2030 (Art.7, EED). The latter must be achieved through the implementation of alternative measures in combination with a system of energy efficiency obligations on energy traders, which must make an annual financial contribution to the National Energy Efficiency Fund (FNEE).

This Plan presents 17 efficiency measures of which 10 have a sectoral approach to comply with the savings obligation (Art.7, EED).

In June 2023, the draft of the first update of the NECP was sent to the EC in accordance with the provisions of Regulation (EU) 2018/1999 (Art.14). The new NECP revises previous objectives upwards. In its current wording it increases the efficiency improvement objective to 44%. In addition, it raises the final energy savings objective to 53.5 Mtoe (Art. 7). To this end, the new Plan presents 23 complementary measures, among which are those promoted by the Recovery Plan, the National System of Energy Efficiency Obligations, Energy Savings Certificates, as well as alternative measures. 15 of these measures have a sectoral approach.

This draft is subject to review according to the comments received by the different agents (Commission and public participation process).

Buildings

In 2021, 67% of the energy demand of residential buildings was concentrated in heating (41%) and electrical equipment (26%). Water heating is the next most relevant use (19.5%), while air conditioning barely exceeds 1% of consumption. Between 2000 and 2021, consumption in residential buildings has increased by 1.1%/year, mainly due to electricity demand (+2.5%/year). Since 2000, the consumption associated with electrical equipment has grown by 3.4%/year, increasing its share in demand (+12 pp). Except for air conditioning, whose demand has risen by 7.5%/year, the remaining uses have remained practically stable, with an imperceptible variation (+0.1%/year) in the case of heating, whose share has decreased by 9 pp. The unit heating consumption follows an erratic behaviour throughout the period with a downward trend (-1.8%/year), to which, efficiency improvements in heating equipment and homes contribute.

Throughout the 2000-2021 period, the energy consumption in the residential sector has grown by 2.7 Mtoe, due to the increase in the number of occupied dwellings (+5.3 Mtoe), as well as greater comfort (+4.3 Mtoe) associated with the acquisition of equipment and a certain movement towards larger homes. These effects have been partially offset by the energy savings (-6.5 Mtoe) attributable to efficiency improvements in equipment and buildings, and to a lesser extent by the favourable weather (-0.7 Mtoe).

Between 2000 and 2011, the unit electricity consumption per employee in the services sector grew (+1.7%/year) above the total (+1.2%/year). Subsequently, there is a change in trend in both indicators, with a more pronounced drop under the impact of the crisis, which attenuates from 2015 onwards except for the effect derived from the pandemic. In the 2011-2021 period the electricity indicator has registered a more pronounced reduction (-2.5%/year), 2.3 times higher. This greater decrease in electricity demand may be due to the penetration of more efficient electrical equipment, mainly in the most consuming branches (offices, trade, and hostelry), together with energy management systems.

In the buildings sector, the actions implemented follow the community guidelines, in particular the Directives on Energy Efficiency (EED) and Buildings (DEEE). Regarding this last directive, in recent years progress has been made in its transposition through different regulatory provisions that increase the levels of demand for efficiency, such as the Technical Building Code (Royales Decree 732/2019, 450/2022), the Regulation of Thermal Installations in Buildings (Royal Decree 238/2013, 178/2021) and the Energy Certification of buildings (Royales Decree 235/2013, 309/2021). Concerning the first directive, there are measures in accordance with articles 4, 5, 6 and 7. The long-term strategy for energy rehabilitation in buildings in Spain (ERESEE 2020) stands out, the measures aimed at the energy renewal of public buildings such as the PIREP Program, the Energy Transition Plan in the General State Administration (AGE) or the AGE Energy Savings and Efficiency Measures Plan, the AGE Green Public Procurement Plan (PCPE), 2018- 2025, as well as support measures (legislative and economic) for rehabilitation such as Law 10/2022 of June 14, and the PREE, PREE 5000 Programs, in addition to the aid programs for residential rehabilitation and social housing (Royal Decree 853/2021).

Transport

In 2021 the final energy consumption in transport is still dominated by road (90%), whose representativeness has increased in 3.3 pp since 2000 under the boost of freight transport and cars. Cars account for 42.5% of transport consumption, while trucks and vans 43.5%. The remaining modes show a slight decline, reaching a share between 1.1% (rail) and 5.6% (air).

The passenger traffic has decreased by 0.7%/year since 2000. In 2021 cars continue to cover most of the passenger traffic (85.6%), increasing their share since 2020 by 5.6 pp. In contrast, public transport has lost representation, falling below 15% (7.2% buses; 7.2% rail). However, this loss must be analysed with caution due to a methodological change implemented in 2017 that affects the accounting of bus traffic and, consequently, public transport.

The freight traffic has increased by 1.1% between 2000 and 2021. The road represents 77% of the freight traffic in 2021, 2.8 pp less than in 2000. Sea transport is next in importance with 19.6% of the freight, which supposes an increase of 4.5 pp compared to 2000. The rail barely reaches 4% of traffic of goods, to which is added a loss of representativeness of 1.7 pp since 2000.

The energy consumption in transport has decreased by 0.1 Mtoe between 2000 and 2021. This is mainly explained due to efficiency improvements (-7.7 Mtoe) induced by technological developments in vehicles. This effect has been practically offset by the effects associated with the behaviour and use of vehicles (+3.2 Mtoe), the activity (+3.4 Mtoe), to which is added the negative contribution of the modal shift with low contribution of the most efficient transport modes (+1.0 Mtoe).

Energy efficiency measures in the transport sector fall into three typologies: improvement in the efficiency of the vehicle fleet through the renewal and/or electrification of vehicles; the promotion of modal change towards less energy-consuming modes; and the efficient use of means of transport. Concerning the first type, the vehicle acquisition aid programs stand out (MOVES, MOVES Singulares, MOVES FLOTAS, the Program for the sustainable transformation of freight and passenger fleets) while within the second type the Infrastructure, Transport and Housing Plan 2012-2024 (PITVI), the Aid Program for municipalities for the implementation of low-emission zones and the Program for the digital and sustainable transformation of urban transport deserve a mention. Regarding the third type, since 2014 the training system to get the driving license for private and industrial vehicles includes driving techniques. Likewise, the use of clean and efficient vehicles is encouraged through a registration tax on CO2 emissions and the classification of vehicles according to polluting potential. 

Within the framework of the NECP, there is a commitment to modal change, traffic reduction, the use of collective public transport, sustainable mobility, and the electrification of transport. On the other hand, the recent review of the NECP delves into changes in transport and sustainable mobility, with emphasis on the transformation of cities. In addition, reinforcing the commitment to public and collective transport and the railway, among others.

Industry

The energy consumption of the industry has followed a downward trend since 2005, which has continued with certain disruptions caused by the various crises (economic and health) and its subsequent recovery. In 2021, consumption amounts to 28.4 Mtoe, 16.3% lower than in 2000. Five intensive branches concentrate 61.2% of consumption: non-metallic minerals (20.1%), chemicals (18.0%), steel (9.1%), non-ferrous metals (5.5%), and pulp and paper (8.4%). The greatest reduction in consumption occurs in the non-metallic minerals and steel industries (-2%/year), decreasing their share in demand, respectively 6.2 and 2.7 pp.

Among the most intensive industries, the downward trend in unit consumption of the steel (-1.3%/year) and paper (-1.7%/year) stands out in the 2000-2021 period. In contrast, the cement industry, despite its good performance before the economic crisis, has worsened by 0.8%/year throughout the period. All trends towards improvement were interrupted due to the impact of the crisis on productive capacity and, consequently, on the performance of equipment and processes. With the change in the economic situation after 2014, the steel and paper industries in 2021 have recovered or even improved compared to the pre-crisis level, while cement remains 55% above.

Between 2000 and 2021, the energy consumption of the industry has decreased by 4.0 Mtoe, mostly because of efficiency improvements (-7.5 Mtoe) and the drop-in activity (-5.8 Mtoe), reinforced during the different crises, economic (2008-2014) and 2020 health (COVID-19). These effects have been partially offset by operational inefficiencies (+7.2 Mtoe) mainly associated with the crises, and to a lesser extent by structural changes (+2.1 Mtoe).

Actions to improve energy efficiency in the industrial sector, generally framed in the different efficiency plans, and more recently within the NECP, are aimed at promoting investments in efficiency projects through technological improvements and the implementation of energy management and audit systems. Among the most recent measures are the aid program for SMEs and large companies, the obligation to carry out audits in large companies and the aid lines within the framework of the Recovery Plan for innovation and sustainability plans in the manufacturing industry, and to comprehensive actions of the Electric and Connected Vehicle industrial chain (PERTE VEC).

Within the new NECP, as a novelty, improvements are focused on energy intensive industries.