Heating and cooling networks powered by clean energy sources are becoming a key component in decarbonizing Spanish cities. Instead of each building having its own boiler, a centralized system distributes hot and cold water through insulated pipes, significantly reducing energy consumption and COâ‚‚ emissions . This model, widespread in Northern Europe, has been gaining ground in Spain for years thanks to European funding and the efforts of specialized companies.
The second round of the RENORED program, managed by IDAE and funded by the Recovery Plan, has approved 36 projects that will mobilize an investment of nearly €210 million . Of this amount, approximately €42,8 million corresponds to direct public aid, with the remainder contributed by the project developers. The goal is to install 252,1 megawatts of renewable thermal power and prevent the emission of approximately 12.600 tons of CO₂ per year.
36 projects to boost thermal networks
Of the 36 approved projects, 17 are newly created networks and 19 are expansions of existing facilities. Most are located in autonomous communities with prior experience in this type of infrastructure. Castile and León leads the list with 10 projects , followed by Catalonia with 8, Castile-La Mancha and Galicia with 4 each, Asturias with 3, the Basque Country and Navarre with 2 each, and Andalusia, Aragon, and the Community of Madrid with one each.
The call for proposals prioritized small and medium-sized enterprises, municipalities in areas facing demographic challenges, and territories affected by just transition processes. Initiatives that supply thermal energy to vulnerable neighborhoods were also viewed favorably , thus combining emissions reduction with social cohesion and local development.
Biomass, the star technology
Among the technologies chosen, biomass stands out clearly: 24 of the 36 projects will use it as their primary energy source. This is followed by geothermal energy with 6 projects, aerothermal energy with 3, hydrothermal energy with 2, and solar thermal energy with one. This variety demonstrates that thermal networks can be adapted to the resources of each region , whether by utilizing forest residues, geothermal heat, or ambient air.
The predominance of biomass is no coincidence: Spain has a significant forest area and a waste management industry that allows for the production of local and sustainable fuel. Furthermore, many of the new networks will be installed in industrial parks and university campuses, where the demand for heat is constant and high.

Rebi, the developer with the most projects
The company Rebi has become the star of this funding round, securing financing for eight of its initiatives. In total, it will receive €12,45 million, representing approximately 12,5% ​​of the total public budget. Rebi is the promoter with the most approved projects and the largest amount of funding in the entire round, as confirmed by the company.
Among its most noteworthy projects is the future industrial heating network for León, which will include a 16-megawatt biomass power plant and a steam and hot water distribution network to supply multiple buildings and consumption centers. This project, which will receive €3,48 million in funding, will allow for the replacement of fossil fuels with biomass in the industrial park of the city of León.
Other Rebi initiatives include expansions of the district heating networks in Cuenca, Soria, Guadalajara, Aranda de Duero, and Azuqueca de Henares, as well as new networks in Tarancón and Ólvega. Together, these infrastructures will contribute to decarbonizing cities and industries in Castile and León and Castile-La Mancha, reducing dependence on gas and heating oil.
Priority for SMEs and rural areas
The RENORED program assesses not only technical aspects but also social and territorial impact. Grants have been awarded prioritizing small and medium-sized enterprises, municipalities facing depopulation, and areas undergoing a just transition following the closure of mines or coal-fired power plants. The goal is to ensure the energy transition reaches rural areas and is not concentrated solely in large cities.
The first RENORED call for proposals already funded 20 projects with €34 million. This second edition doubles the scope and consolidates a strategic approach that, according to the Ministry for Ecological Transition and the Demographic Challenge (MITECO), will continue in the coming years. Renewable heating and cooling networks are thus emerging as a fundamental tool for achieving the objectives of the National Integrated Energy and Climate Plan (PNIEC), which aims to reduce the energy demand of buildings and increase the use of renewables for heating and cooling.
With an investment exceeding €210 million and more than 250 megawatts of new renewable thermal power, the RENORED program reinforces the role of these infrastructures as one of the most effective solutions for accelerating the decarbonization of Spain's building stock. The commitment to biomass, geothermal energy, and other clean sources, along with the reuse of existing infrastructure and support for rural areas, paints a picture in which renewable heat is no longer just a promise but a tangible reality in dozens of municipalities across Spain.