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BOE-A-2026-22615 ·29 October 2026 ·Royal Decree Medium impact
Administrative

Energy and biomass producers: new restrictions on financial support and application of the cascading use principle

Royal Decree 926/2026 regulates the cascading use principle for biomass, prioritising its use as a material over its use for energy (Art. 1). It introduces restrictions on granting direct financial support for energy production from certain forest products, such as sawmill logs, roundwood, or stumps. Furthermore, it limits support for plants that operate solely for electricity production (Art. 1).

In 3 key points

  1. Priority of biomass use as a material over its use for energy purposes (cascading use principle), Art. 1 (art. 1)
  2. Restrictions on financial support for energy produced from sawmill logs, roundwood, stumps, and roots, Art. 1 (art. 1)
  3. Limitation on new support or renewals for plants dedicated solely to electricity production, Art. 1 (art. 1)

How it affects those involved

For energy producers and forestry sector companies, the regulation imposes limitations on access to public aid if they use materials of low priority within the usage hierarchy (Art. 1). Companies operating exclusively with electricity-only plants will face restrictions when obtaining or renewing financial support (Art. 1). The sector must adapt its biomass harvesting model to comply with the efficiency and sustainability principles required by EU legislation (Directive (EU) 2023/2413).

Lifecycle

2026-10-29PublishedPublished in the BOE
Official text Based on BOE data (boe.es). Information, not advice.

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