Thousands of non-compliant LED lights were installed in livestock farms as part of a large-scale fraud involving energy transition credits. The scheme, launched in 2022 by energy companies under government oversight, aimed to encourage entrepreneurs to replace outdated halogen lights with energy-efficient LED alternatives by offering small financial incentives. However, the initiative spiraled into a crisis by the end of 2025 due to poor oversight and the exploitation of the Energy Savings Certificates (CEE) system, which requires energy providers to fund energy-saving initiatives. One specific program, known by the code name BAT-EQ-127, focused on "external luminaires" — lights used in agricultural settings. It offered around 30 euros for replacing a 100-watt halogen light with an LED. Fraudsters exploited this by sourcing low-quality LED lights for as little as 10 euros per unit, creating a 20-euro profit margin. Many of these companies were short-lived and operated with the sole purpose of capturing public subsidies. The program's expansion to include the agricultural sector, combined with falling equipment prices, likely fueled the surge in fraudulent activity. Fraudulent installations often involved oversized lighting setups, with some farmers receiving up to 50 lights when only 10 to 20 were needed. This not only failed to reduce energy consumption but also increased electricity bills. The non-compliant LED lights also caused unintended harm to livestock. The lights emitted an extremely white, harsh light that animals found stressful, and the flickering disrupted their natural rhythms. This led to decreased milk production, fertility issues, and cows avoiding milking robots, all of which had serious economic consequences for farmers. The fraud was largely unchecked due to a lack of oversight and a climate of impunity. In February 2026, the government halted the program after recognizing "a number of concerning fraudulent practices." The failure of the initiative has had lasting effects on the industry, with some businesses collapsing due to unfair competition. The market is now flooded with surplus LED equipment, leading to waste and environmental concerns. Farmers may also face the need to repay subsidies if the National Center for Energy Savings Certificates cancels the fraudulent operations in the coming years.