Introduction to Spanish Energy Saving Certificates (CAE)

A CAE is an electronic document that certifies that, after implementing an energy efficiency measure, a final energy saving equivalent to 1 kWh has been achieved.

The main beneficiaries of CAE include:  

Energy Service Companies (ESCOs): These companies design and implement energy efficiency solutions and can use CAE to finance projects or as proof of compliance with energy savings targets. 

End consumers (residential, commercial, and industrial): CAE can reduce the initial cost of implementing energy efficiency technologies, facilitating investments in improvements that reduce energy consumption and utility bills. 

Governments and regulators: Use CAE to meet national energy efficiency and CO2 emission reduction targets, creating incentives for the market to invest in clean technologies. 

Investors and financial markets: CAE can be traded, providing a mechanism for investors to support and benefit from energy efficiency projects. 

Transport: The CAE supports the transition towards more sustainable transportation options, such as the incorporation of electric vehicles and improving the efficiency of existing fleets. This not only reduces the consumption of fossil fuels but also promotes a greener and more efficient transportation infrastructure. 

Historical Context and the Need for CAE in Spain 

Spain, with its historical dependence on imported energy sources and its commitment to European climate targets, has seen CAE as an effective tool to promote energy sustainability. Since the introduction of energy efficiency-related legislation in the 2000s, the country has undergone significant transformations in its energy landscape. 

• Promote energy efficiency projects throughout Spain by facilitating their financing in a fast and direct way.

• Monetize the energy savings generated by these projects.

• Help companies meet their decarbonization goals and improve their sustainability indicators (ESG criteria).

• Generate additional benefits such as job creation, increased competitiveness, and improved business productivity.

The measures must generate final energy savings that are measurable, verifiable, and durable over time. There are two types:

• Standardized measures: Listed in the Catalogue of Standardized Energy Saving Sheets published by MITECO. Each sheet describes a specific measure and includes a predefined formula that allows for simple and transparent calculation of savings.

• Singular measures: Do not have a predefined formula. They require a specific methodology designed for each project, which must be validated by the Ministry for Ecological Transition before implementation.

• Obligated Parties (SO): Electricity, gas, and oil product suppliers that must meet energy efficiency targets. Part of their obligation can be fulfilled by acquiring CAEs, which is a more cost-effective and efficient alternative to other options.

• Delegated Parties: Accredited entities—such as ACT Group—that can obtain CAEs on behalf of Obligated Parties. These are the only entities, besides Obligated Parties themselves, authorized to hold and trade certificates.

• Beneficiaries: Organizations or individuals who generate energy savings through efficiency projects, which can be converted into CAEs.

• End User: The person or entity that directly benefits from the implemented energy efficiency measure.

• Owner of the Saving: The party that makes the initial investment in energy efficiency and may transfer ownership of the savings to a third party in exchange for compensation.

• Verifier: An entity accredited by ENAC responsible for verifying proper implementation of the measure and the validity of the declared savings.

• Regional Managers: Responsible for validating CAE issuance requests and registering the measures in the system.

• National Coordinator of the CAE System: The body responsible for overall regulation and the registration of certificates.

The process is designed to be standardized, transparent, and free of direct costs for the owner of the savings, unlike traditional subsidy schemes, which tend to be complex and slow.

1. Signing of the CAE Agreement between the owner of the savings and ACT Group (Delegated Party).

2. Document and technical management by ACT, ensuring the measure’s eligibility and correct savings calculation.

3. Independent verification of the file by an entity accredited by ENAC.

4. Validation by the regional manager, who forwards the information to the National Coordinator.

5. Issuance of the CAE, which is then officially registered in the system.