Law 18/2014 established a system of obligations for gas and electricity suppliers, oil product wholesalers and LPG distributors.
The system came into force with the publication of the Law on 17 October, 2014 and will run until 31 December, 2020.
Annual energy saving quotas for “obligated entities” (1.5% of annual energy sales) and their financial equivalence were set by an order of Spain's Ministry for Industry, Energy and Tourism and take the form of a contribution to the National Energy Efficiency Fund (FNEE). FNEE is managed by the Institute for Energy Diversification and Savings (IDAE). Contributions must be made by the 28 February, 30 April and 30 June each year.
The law allows that a mechanism for accrediting energy savings could be developed in Spain via the use of Energy Saving Certificates (TEEs).
Royal Decree Law 8/2014, implemented by law 18/2014, set an energy savings target for 2014 of 131 ktoe, or 1,523.26 GWh. The financial equivalence was set at €0.79 million/ktoe saved or €69.9 million/GWh saved. The total contribution owed by the 114 obligated firms to the FNEE was €103,454,332.
Ministerial Order IET/289/2015 set the 2015 target at 262 ktoe, or 3,045.51 GWh. The financial equivalence was left unchanged. The total contribution was €243,960,873.47 (including adjustments in respect of 2014), split this time between 489 obligated parties.
Ministerial Order IET/349/2016 set the same target for 2016 as for 2015, with the same financial equivalence. The total contribution that year was €216,771,504.11 (after adjustments for 2015), split among 520 obligated parties. There was also an additional €1,704,585.92 contribution in the annual distribution.
The FNEE draws its budget from a range of sources: the European Regional Development Fund (ERDF), contributions from the obligated parties under the obligations system, contributions of the central government budget and any other resources available to finance energy saving and energy efficiency projects.
New grant allocations introduced in 2016 were intended to promote energy efficiency improvements in desalination and rail system plants and energy renovation of buildings. The budget for these new 2016 initiatives totalled €82 million.
These initiatives were in addition to those launched in 2014 and 2015: municipal street lighting, SMEs and large corporates, transport systems and an “Energy Efficiency” communications campaign.
The fund's 2016 budget was €207 million.
Spain also planned a number of alternative measures - tax breaks, grants, and education and training programmes - which involve energy-efficient technologies and techniques to help cut final energy consumption.
Various proposals were adopted, some still on the drawing board and some already up and running for the term of the Directive, between 1 January, 2014 and 31 December, 2020.
Spain has numerous energy efficiency support programmes sponsored by Autonomous Regions or municipalities.