Spain’s just transition energy tenders
Spain’s Just Transition Institute (ITJ) has developed a series of innovative tenders linking grid access for renewables to job creation and social and environmental programmes. The first will see utility Endesa investing €1.5 billion in the municipality of Andorra, Aragón.
Summary
- Spain has pledged to shut down all of its coal-fired power capacity before 2030, a sector that directly employed 3,000 people as recently as 2018.
- To help ameliorate the impact, Spain’s ITJ has developed a series of tenders that link grid connections for new renewables projects with pledges to invest in the local economy of areas affected by the coal closure programme.
- The first tender, approved in 2022, will see a subsidiary of utility Endesa invest €1.5 billion in renewables projects alongside €60 million in employment creation and social and environmental initiatives.
- The bid involved extensive consultation with local communities and businesses, using the Creating Shared Value model developed by Endesa’s parent company, Enel.
- Local partners are already reporting close partnership with Endesa and positive impacts including job creation and a slowdown of demographic decline in rural villages. Trade union groups are also supportive of the mechanism.
- ITJ is now refining the tender process and is rolling it out to other regions in Spain.
