03/12/2025 - SD Verdia

03/12/202510/10/2026

The basics of land leasing for renewable energy projects

Asesoramiento legal en producción de energías renovables

Land leasing is a crucial element in renewable generation projects because it guarantees the long-term availability of the space needed for the installation and operation of infrastructure such as wind turbines or solar panels. A well-structured contract provides legal certainty to both the developer and the owner, sets clear conditions on use, financial compensation and responsibilities, and reduces risks linked to land-use disputes.

This article analyses the key aspects for securing, through a lease contract, the rights to use a plot of land in order to develop, build and operate a renewable energy generation plant.

Applicable legal regime

Lease contracts linked to renewable energy projects are subject to what is agreed between the parties and, on a subsidiary basis, to the provisions of the Civil Code and the applicable regional rules.

Contractual aspects

Bearing the above in mind, it is very important to establish clear agreements in the lease contract that also anticipate as many situations as possible, avoiding uncertain scenarios throughout its term.

Some aspects to bear in mind are:

Segmenting the contract into at least three phases: (i) development; (ii) construction and operation; (iii) decommissioning.

The first phase comprises carrying out the land studies and obtaining the relevant permits and licences. During this period, a minimum or grace rent is agreed, by way of reservation, so that the developer can carry out the relevant studies but without yet having possession of the property, so the owner can continue the activity they carried out before signing the contract.

The second phase comprises the construction and operation of the project once the permits and licences have been obtained. It also usually coincides with the formalisation of the contract into a public deed and the registration of the leasehold right in favour of the developer in the Land Registry, achieving its enforceability against third parties.

Finally, the decommissioning phase regulates the conditions for returning the land to the owner once the project has ended. Although less attractive, the completion of this period must also be well defined to avoid unforeseen events or misunderstandings between the owner and the developer, bearing in mind that the contractual relationship is coming to an end and both parties have different interests.

An alternative to the lease contract is the lease-option contract. This arrangement gives the developer the power to carry out the preliminary studies and, once all the permits and licences have been obtained, to establish the lease in its favour under the conditions previously agreed with the owner.

Term and duration

The developer’s possession of the land must be in line with the useful life of the project. That is why it is important to define the number of years of the lease contract, adding one or more extensions at the developer’s discretion to cover possible unforeseen events.

As regards the duration of the contract, it is necessary to prevent the owner from being able to withdraw from it unilaterally. Consequently, it is advisable to establish protective mechanisms, such as requiring the owner to demand compliance with the obligations not met by the developer, granting it a reasonable cure period, before the owner’s right to terminate the contract arises.

By contrast, the developer should have the possibility of withdrawing swiftly from the contract in the event of the project’s unfeasibility, avoiding being obliged to pay the rents not accrued up to that point and preferably without penalties.

Ownership, transfers and encumbrances of the property

In addition, during the term of the contract, it must be ensured that the tenant’s right will not be interrupted. To this end, before it is registered in the Land Registry, it is advisable that the owner, in the event of a transfer of ownership of the property, undertakes to condition the validity of the title on the acquirer subrogating to the lessor’s position in the contract. Likewise, the owner’s commitment not to encumber the property should also be obtained.

Before signing the lease contract, it is essential to verify that it is entered into with the owner of the property or with a person authorised to act on their behalf, as well as the charges on the property, to confirm that the lease is fully secured.

Finally, it is important to establish clearly that the installations belonging to the project are the property of the developer, as a way of safeguarding against Articles 353 et seq. of the Civil Code, which establish the owner’s right of accession over goods incorporated into their property naturally or artificially.

Conclusions

The land where the energy generation plant will be installed is one of the most important elements for the project to be viable.

For this reason, establishing a lease contract with clauses that anticipate as many future scenarios as possible, balanced for the landowner and the plant developer, is essential to provide a solid basis of security and stability, avoiding future negotiations with the owner when, as the project advances, the owner has much greater bargaining power.

03/12/202510/10/2026

Renewable gases: the role of biogas and biomethane in Spain’s decarbonisation

Introduction to biogas and biomethane

Biogas is produced by the anaerobic digestion (without oxygen) of organic matter from agricultural, livestock and forestry residues, municipal solid waste and wastewater. It comes from renewable sources, unlike fossil natural gas, but has a similar composition with a high methane content. Biomethane is biogas that has undergone an “upgrading” process, which removes impurities and CO₂ to reach roughly 95% methane; it can be injected into the gas grid mixed with natural gas and used for electricity, heat and vehicles.

Uses and applications of biomethane

Biomethane is a direct substitute for natural gas and can be injected into the existing grid without additional infrastructure investment. It can decarbonise homes and industry, power vehicles as bio-CNG (compressed) or bio-LNG (liquefied), decarbonise industrial processes that cannot be electrified, serve as a feedstock for renewable hydrogen and support the circular economy by managing organic waste.

The situation of biogas and biomethane in Spain and Europe

Spain has high potential thanks to its agricultural, livestock and urban waste, but development has lagged other European countries because of regulatory and administrative barriers, complex environmental permitting and social-acceptance issues. CNMC Circular 2/2025 (BOE-A-2025-7661), which regulates access to and injection of renewable gases into the gas system, is a decisive advance, and the Guarantees of Origin system for renewable gases should, together with a clearer regulatory framework, boost project development. The International Energy Agency estimates biomethane could cover up to 10% of global gas demand by 2050, and the REPowerEU package gives it a priority role, with a target of 35 bcm of annual production by 2030. Biomethane still costs more than fossil natural gas.

Conclusions: challenges and opportunities

Social acceptance is the main obstacle, often due to limited public knowledge of how biomethane is produced and of its benefits. Biomethane recovers organic matter that would otherwise go to landfill, reducing waste and supporting the circular economy; it creates jobs, boosts rural development, strengthens energy security and reduces dependence on fossil gas. Its consolidation depends on social acceptance and on a regulatory environment that provides legal certainty and recognises its environmental value.

03/12/202510/10/2026

The regulation of energy communities in Spain

Asesoramiento legal en comunidades energéticas

Energy communities are legal entities that allow individuals and companies to come together to develop projects linked to the energy transition. These figures are essential to promote a fair, decentralised energy transition in which citizens take a central role and cease to be passive consumers to become prosumers.

While the term “energy community” is useful as a general concept to refer to this type of entity, from a legal standpoint it is necessary to distinguish between Renewable Energy Communities (REC), introduced by Directive (EU) 2018/2001, and Citizen Energy Communities (CEC), regulated under Directive (EU) 2019/944. The REC and the CEC are the figures that, being contemplated in legal rules, can produce legal effects.

In the Spanish legal system, both are recognised in Law 24/2013, of 26 December, on the Electricity Sector (LSE), where they are defined as players in the electricity sector empowered to carry out activities for the supply of electricity.

Their regulation is summarised below.

Renewable Energy Communities

Under Article 6.1.j) of the LSE, RECs are legal entities based on open and voluntary participation, autonomous and effectively controlled by partners or members (natural persons, SMEs or local authorities, including municipalities) located in the vicinity of the renewable energy projects developed and owned by those entities. Their main purpose is to generate environmental, economic or social benefits for their members or the local areas where they operate, rather than to obtain financial profit.

Likewise, Article 12 bis of the LSE regulates the rights of RECs, recognising their capacity to produce, consume, store, sell and share renewable energy within the community, as well as to access the energy markets directly or through aggregation. This provision also entrusts public administrations with removing barriers and guaranteeing fair, transparent and non-discriminatory treatment, facilitating RECs’ access to financing, information and the participation of all consumers.

Citizen Energy Communities

For their part, Article 6.1.k) of the LSE defines Citizen Energy Communities (CEC) as legal entities based on open and voluntary participation, whose effective control lies with natural persons, local authorities or small companies. Their main objective is to generate environmental, economic or social benefits for their members or for the community in which they operate, prioritising these aims over obtaining financial profitability.

Likewise, Article 12 ter of the LSE establishes the framework applicable to CECs, urging the legislator to guarantee a favourable legal environment that ensures open, voluntary and non-discriminatory participation, allowing members to retain their rights as consumers and to leave the community freely.

Differences and similarities

RECs and CECs share many similarities, since both are legal entities based on open and voluntary participation, aimed at generating environmental, economic or social benefits for their members or the territory.

However, they differ in three main areas. First, as regards effective control, RECs may be controlled by natural persons, SMEs and local authorities, whereas in CECs such control can only lie with natural persons, small companies or local authorities, medium-sized companies being excluded. Second, in relation to activities, RECs are limited to renewable energy projects, whereas CECs may carry out all electricity-sector activities except transmission. Finally, as regards the proximity criterion, this applies only to RECs, whose members must be located near the renewable energy projects, whereas CECs are not subject to this restriction.

Future regulation

Still pending is the approval of a regulation defining indeterminate legal concepts, such as effective control or open and voluntary participation, and developing the favourable legal framework referred to in Article 12 ter of the LSE and the European Directives. Nevertheless, it is currently possible to set up energy communities and carry out activities within them, since these figures already have legal recognition, and in practice the definitions used in the calls for aid to energy communities are applied. However, the future approval of a specific Royal Decree on energy communities is expected. It is worth noting that some autonomous communities, such as Aragon or Catalonia, have moved ahead in developing their own legal framework for RECs and CECs, figures set to play a key role in achieving a fair, participatory and distributed energy transition.

Conclusions

Energy communities are here to stay and represent an exceptional opportunity to drive new business models rooted in the territory and built on social consensus. Their participatory nature allows citizens, companies and administrations to collaborate on projects with a strong environmental and social component, fostering a truly fair and decentralised energy transition.

For companies, these figures offer a double value: on the one hand, they make it possible to take advantage of the positive public reception of initiatives based on cooperation and sustainability; on the other, they help their participation contribute tangibly to citizens materialising projects of collective interest, strengthening social cohesion and territorial acceptance.

Understanding the applicable rules is essential. Both RECs and CECs have legal recognition in Law 24/2013 on the Electricity Sector, which allows their effective establishment and operation. Although regulatory development is still needed to clarify key concepts and complete the legal framework, the current system already makes it possible to deploy these initiatives, even supported by calls for aid and by the pioneering rules of some autonomous communities.