Electric grids are an essential element of the energy system, as they ensure a secure and reliable supply capable of integrating new demand, energy sharing, generation, and the electrification processes of the economy. Their development, operation, and expansion require proper investment planning, efficient grid management, and the recognition of adequate remuneration to ensure the economic viability of the infrastructure.
In a complex regulatory environment subject to continuous updates, grid operators face significant legal and economic challenges, both in the permitting of new infrastructure and in the correct application of the remuneration regime applicable to transmission and distribution activities.
At SD Verdia we have solid experience in providing comprehensive legal advice on electricity grids, supporting grid operators throughout all phases of the life cycle of their infrastructure, from investment planning and authorisation to operation, remuneration, and defence against regulatory actions. Our approach combines regulatory knowledge, technical capability, and procedural experience, offering specialised and strategic support.
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We answer the most common questions about the regulation, planning and remuneration of electricity grids.
Transmission and distribution are regulated activities whose remuneration is set by the CNMC. The methodology is established in CNMC circulars — Circular 2/2019 for transmission and Circular 6/2019 for distribution — which define the regulatory parameters, investment incentives and the regulatory period applied to grid operators.
Under Law 24/2013, planning of the electricity transmission grid is mandatory and binding. It is approved by the Government, with parliamentary involvement, for successive planning periods, and determines which new facilities and reinforcements may be developed. Approved planning is a prerequisite for authorising transmission installations.
The core framework is Law 24/2013 of the Electricity Sector and Royal Decree 1955/2000 on the transmission, distribution and authorisation of electrical installations. The remuneration regime is set by CNMC circulars, and access and connection to the grids are governed by Royal Decree 1183/2020.
SD Verdia advises transmission and distribution operators, developers and large consumers on grid authorisations, remuneration matters and access and connection issues. We also support projects involving direct lines and self-consumption networks and their integration with energy storage.
