BOE-A-2026-16662 ·31 July 2026 ·Royal Decree High impact
Subsidies

Electricity distribution and transport companies: reallocation of subsidies for grid digitalization and decarbonization

Royal Decree 641/2026 modifies the regulations for direct subsidies granted to electricity distribution and transport companies funded by Next Generation EU funds. The objective is to reorder available funds to optimize their use in view of potential surpluses held by the National Commission on Markets and Competition (art. I). The regulation aims to ensure investment in distribution grid digitalization and strategic decarbonization projects within the transmission network.

In 2 key points

  1. Reordering of funds to optimise the use of leftovers in CNMC, art. I (art. I)
  2. Focus on digitalisation of distribution networks and decarbonisation projects in transport, art. I (art. I)

How it affects those involved

Energy distribution companies can manage funds more efficiently for digitalisation and EV charging infrastructure. Electric transport companies see revised subsidy rules for decarbonisation projects. The main effect is optimising leftover funds transferred to CNMC to prevent loss of investment capacity in critical infrastructure.

Frequently asked questions

What is the main objective of this Royal Decree?
To reorganise funds from the Recovery Plan to optimise their use, particularly in light of potential leftovers in CNMC (art. I).
In which sectors are these subsidy modifications applied?
In energy distribution companies (digitalisation and EV charging) and in electric transport companies (decarbonisation) (art. I).

Lifecycle

2026-07-31PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.
PDF on boe.es

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This analysis is informational only and does not constitute legal advice or create a client-adviser relationship. BM Consulting.
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