SD Verdia

Day: 11 December 2025

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Developing hydrogen projects in Spain: legal framework, opportunities and specialised legal advice

biogás y biometano en España

Green hydrogen, driver of Spain’s energy transition

Renewable hydrogen, produced by water electrolysis, is a sustainable option for hard-to-decarbonise sectors such as heavy industry, maritime transport and energy storage. Spain is positioned as a European leader, supported by its renewable capacity and by the H2Med hydrogen corridor linking the Iberian Peninsula with France and the rest of Europe. The National Integrated Energy and Climate Plan (PNIEC 2023-2030) foresees production plants, transport infrastructure and industrial consumption networks.

Regulatory framework applicable to hydrogen in Spain

The legal framework combines European, national and regional rules that are constantly evolving, and their correct interpretation is essential to the legal and economic viability of projects.

European rules

  • EU Hydrogen Strategy (2020): a roadmap to build an EU market for clean hydrogen.
  • Regulation (EU) 2021/1119 (European Climate Law): sets the climate-neutrality objective for 2050.
  • Directive (EU) 2023/2413 (RED III): defines the sustainability and certification criteria for renewable hydrogen.
  • TEN-E Regulation: includes hydrogen infrastructure among Projects of Common Interest (PCI).

Spanish rules

  • Hydrogen Roadmap (MITECO, 2020): a strategic document setting national targets for production, consumption and infrastructure.
  • PNIEC 2023-2030: reinforces the role of renewable hydrogen in the energy transition.
  • Royal Decree-law 23/2020: promotes clean-energy projects and technological innovation.
  • Regional strategies in Andalusia, Aragon, Castilla-La Mancha and the Basque Country, with dedicated aid lines and subsidies.

Legal and administrative challenges of hydrogen projects

Processing and permits

Production and distribution plants need environmental, industrial and energy authorisations. The absence of a single-window procedure can complicate and delay projects.

Certification of green hydrogen

Compliance with the EU sustainability and traceability criteria requires a national guarantees-of-origin system, which is still under development.

Financing and public aid

Access to IPCEI and Next Generation EU funds requires meeting strict legal requirements on State aid and competition, which makes expert legal advice essential.

Contracting and risks

Hydrogen purchase agreements (HPA), power purchase agreements (PPA) and public-private partnerships need a clear legal framework that allocates technical, regulatory and financial risks.

Investment opportunities

Spain’s renewable abundance, strategic location and institutional support make it a potential green hydrogen hub. Opportunities include integrated production, storage and consumption projects; export-oriented logistics and port infrastructure; industrial initiatives in chemicals, steel and sustainable mobility; and hydrogen corridors connected to Europe.

The key role of legal advice in hydrogen projects

Given the regulatory complexity and its rapid change, specialised legal counsel is decisive. Support typically covers identifying the applicable rules and licensing; legal and tax structuring; drafting and negotiating supply, financing and collaboration contracts; accessing and justifying public aid; and compliance on sustainability and industrial safety.

Conclusion

Green hydrogen is an energy, economic and technological opportunity that requires sound legal planning from conception through execution, especially where financing is involved. Specialised legal advice is essential to turn the regulatory challenges into sustainable growth.

Related reading: biogas and biomethane, guarantees of origin and energy storage.

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What is a Power Purchase Agreement (PPA) and how is it regulated in Spain?

Contrato PPA de energía renovable en España

A Power Purchase Agreement (PPA) is a bilateral contract between a buyer and a seller under which the parties agree on a price for energy over a defined period, generally in the medium or long term. It gives the generator predictable revenue and gives the consumer a stable, often renewable, supply of electricity.

Types of PPA: physical and financial

Depending on whether the energy is physically delivered, two main types of PPA can be distinguished:

  • Physical PPAs: the energy is physically delivered from the generating facility to the consumer. They can be on-site (a direct connection between generator and consumer) or off-site (delivered through the grid). They suit consumers with stable demand who want a predictable price.
  • Financial or synthetic PPAs: no physical delivery takes place. The parties settle the difference between the market price and the agreed price. For accounting purposes they are treated as derivative financial instruments, and they suit large consumers seeking budget stability or sustainability objectives.

Regulatory framework

There is no PPA-specific regulation in Spain. Physical PPAs are addressed indirectly by the Electricity Sector Act (Ley 24/2013, de 26 de diciembre, del Sector Eléctrico), by Royal Decree 2019/1997 organising and regulating the electricity production market, and by Directive (EU) 2018/2001 on the promotion of the use of energy from renewable sources. Financial PPAs fall under the EMIR Regulation and EMIR Refit, together with the applicable accounting and tax rules.

Advantages of a PPA

For the buyer

Price stability, protection against market volatility and a renewable supply backed by Guarantees of Origin, which helps meet ESG objectives.

For the seller

Stable, long-term revenue that improves the project’s bankability, makes financing easier to secure and increases the project’s appeal to investors.

Conclusion

A PPA is a strategic tool for both parties. The choice between a physical and a financial PPA depends on connection needs, the flexibility sought and the financial goals of each party.

Related reading: hybrid PPAs, guarantees of origin and energy storage.