La Madrid's Municipal Transport Company (EMT Madrid) has launched a pioneering model to convert their energy savings in direct economic revenue, clearly linking energy efficiency with the financing of its own decarbonization. Through a contract with Iberdrola, the municipal company will be able to receive money for every megawatt-hour of consumption avoided until the end of the decade.
This agreement, of initial duration of one year and extendable until 2030This allows EMT Madrid to sell both verifiable energy savings and energy saving certificates generated by their sustainable mobility projects. In practice, every improvement applied to the bus fleet, the BiciMAD system, or their facilities translates into a double benefit: fewer emissions and an economic return that reinforces future investments.
A contract to monetize energy savings until 2030
The heart of the operation is a contract signed between EMT Madrid and Iberdrola which establishes a stable framework for the buying and selling of energy savings for virtually the entire decade. The document sets an initial validity of twelve months, but opens the door to successive extensions that allow the mechanism to be extended until the end of 2030, aligning it with the main European climate objectives.
The tender starts from a base budget of 13,7 million euros (excluding VAT)although the maximum economic volume of the agreement can grow to 41,7 millones de euros if all the planned extensions are implemented. In this way, Madrid transforms an effort that, until now, was purely environmental into a financial instrument capable of injecting additional resources in the public transportation system.
Under the contract, EMT Madrid will put two types of assets on the market: on the one hand, verifiable energy savings, linked to clearly measurable reductions in consumption; on the other hand, energy saving certificatesThese savings are formally recognized within the state system. Both are transferred to Iberdrola, which will use them to meet its energy efficiency obligations as a supplier.
The agreement is not limited to specific transactions: it allows the marketing of both efficiency measures already deployed in recent years such as the actions that EMT will implement while the contract remains in force. Thus, current and future projects are integrated into the same strategy, giving continuity to the decarbonization of Madrid's public transport without depending solely on annual grants or budgets.
Prices per MWh and regulatory framework for certificates
One of the key elements of the model is the economic valuation of each megawatt hour savedThe tender sets reference prices for both types of assets: Verifiable energy savings are remunerated at 178,01 euros per MWh, while the Energy saving certificates reach 182 euros per MWhThis difference reflects the added value of having savings converted into an official security within the national system.
These quantities are not static: they They will be updated annually based on the financial equivalence index. published by the Ministry for Ecological Transition and the Demographic Challenge. In this way, the contract adapts to price fluctuations and energy market conditions, preserving the long-term economic viability of the operation.
The entire scheme is based on the Energy Saving Certificate System (CAE)Created by Royal Decree 36/2023, this system allows companies to meet a portion of their national energy savings obligations by purchasing certificates generated by efficiency projects. In practice, companies required to reduce their consumption can acquire these certificates from entities like EMT Madrid, which promote their decarbonization projects.
In the technical and administrative field, Iberdrola assumes an essential role: It is responsible for processing the registration of certificates in the national registryThe company is responsible for justifying its actions to the administration and ensuring that each saving meets legal requirements. Once the certificates are issued, the company will pay EMT Madrid the agreed amounts for the recognized MWh.
This regulatory framework makes it possible that Energy that is not consumed becomes a transferable economic assetBeyond Madrid, the model fits with the European trend of rewarding investments in efficiency and sustainable mobility, integrating public transport policies within the financial architecture of the energy transition.
Electrification of buses, BiciMAD bike-sharing system and modernization of infrastructure
The basis of the contract is the efficiency and decarbonization measures already undertaken by EMT Madrid and those that will be developed over the next few years. Among them, the following stand out: progressive electrification of the municipal bus fleet, a process that is progressing with the withdrawal of diesel vehicles and the massive incorporation of zero-emission units.
The municipal company has taken important steps, such as the withdrawal of its last diesel buses by the end of 2022 and the planning for a fully electric fleet in the near future. By the end of 2024, the city's plans envisioned having around 440 zero-emission buses circulating in the citya figure that continues to grow with new electrical acquisitions.
Another important piece is the transformation and expansion of the bicimad systemThe public bike-sharing service. The system's renewal, the introduction of new stations and bicycles, and the improvement of its energy efficiency—both in operation and charging infrastructure—generate savings that are also integrated into the contract, providing additional financial credits.
In parallel, EMT is implementing energy improvements at its operations centers and other facilitiesThis includes equipment upgrades, optimized energy consumption, modernization of lighting, climate control, and charging systems, as well as adapting the garages to the new electric fleet. Every kilowatt-hour saved through these actions translates into potential revenue within the scheme developed with Iberdrola.
This comprehensive approach means that savings don't depend on a single measure, but on a set of changes ranging from the vehicle seen on the street to the less visible but crucial internal infrastructures for the daily operation of public transport. All of this is integrated under the same umbrella of efficiency and monetization of savings.
Iberdrola's role: technical and financial partner
Beyond the purchase of savings and certificates, Iberdrola assumes the role of strategic partner of EMT Madrid in the field of energy efficiencyThe electricity company not only acquires the rights to the savings generated, but also commits to identifying new actions that can increase the amount of energy not consumed and, therefore, the potential income.
Among its tasks are Identify all EMT measures that could produce energy savingsto assess their technical and economic feasibility and prioritize those that maximize economic return. In this way, the company helps guide the municipal company's investment roadmap towards actions that combine environmental impact and profitability.
Iberdrola will also take care of manage all administrative procedures Associated with the certificates: preparation of documentation, verification of savings, registration in the national registry, and subsequent follow-up. This relieves EMT Madrid of a significant portion of the bureaucratic burden and allows it to concentrate on managing the public service.
Once the energy saving certificates are issued and officially recognized, the company will pay EMT the amounts agreed upon for each MWh savedas outlined in the contract specifications. The result is a revenue stream that accompanies the progress of the efficiency projects, reinforcing the economic stability of the decarbonization process.
This type of collaboration exemplifies a model in which the public sector leverages the technical and financial experience of large energy companies without relinquishing control of the service. For a city like Madrid, with ambitious goals regarding climate and air quality, having these types of partners helps accelerate the necessary changes in urban mobility.
EMT Madrid as a reference in urban decarbonization
With the implementation of this system, EMT Madrid positions itself in a prominent position within sustainable public managementBy being able to transform energy savings into an economic resource that drives new investments, the municipal company not only reduces emissions but also uses that reduction as leverage to finance the next stage of its transformation.
The entity's objective is to achieve in the coming years a 100% zero emissions transport fleetCombining electric buses, advanced charging infrastructure, and operations centers adapted to the new needs, the electrification of the service, along with the modernization of facilities, aims to consolidate Madrid as a leader in electric transportation. European leader in sustainable urban mobility.
EMT's decarbonization plan is fully aligned with the Madrid 360 Mobility StrategyThe city's roadmap aims to drastically reduce traffic-related emissions. This strategic framework sets a target of significantly decreasing COâ‚‚ emissions by 2030 and noticeably improving air quality in the capital.
By converting energy savings into a tradable economic asset, the municipal company introduces an additional incentive for to continue deepening efficiency and innovationThe possibility that each energy improvement project will translate into concrete revenue reinforces the economic logic of decarbonization, beyond purely environmental arguments.
Overall, the initiative places Madrid within a line of action that is increasingly present in Europe: that of integrating the market mechanisms in climate and energy policies To accelerate the transition to low-emission urban mobility, the combination of an electric fleet, a revamped public bicycle system, efficient operations centers, and savings-linked financing creates an ecosystem where sustainability and economic viability go hand in hand.
