On 26 June, the Ministry for the Ecological Transition and Demographic Challenge published a draft Royal Decree which will regulate the Remunerative Framework for Renewable Energy applicable to Electricity Generation Facilities (the “draft Royal Decree”).
The draft Royal Decree implements the provisions of article 14.7 bis of the Spanish Electricity Sector Law 24/2013, of 26 December (“LSE”), recently enacted by Royal Decree-law 23/2020, of 23 June, which approves measures in relation to energy and other areas to stimulate economic recovery (“RDL 23/2020”), the main contents of which were analysed here.
Article 14.7 bis LSE set out, in effect, that the Spanish Government could establish a new remunerative framework applicable to renewable energy, which would be added to the current framework and would have the following defining features: a) it will be based on a long-term fixed price for energy; b) it would be awarded by tendering procedures in which electricity, installed power capacity or a combination of both would be up for auction and tenderers would make bids for the price of the remuneration for the energy produced; and c) separate auctions may be held by technology on the basis, among other criteria, of their technical characteristics, scale, dispatchability, localisation or technological maturity.
The draft Royal Decree logically includes these features and, although it is at an initial stage of approval (a public consultation has been opened which will last until 17 July 2017 and has at the same time been sent to the National Markets and Competition Commission for it to issue its report) and might obviously suffer amendments, its essential content is unlikely to change substantially.
The content of the draft Royal Decree is analysed in the below link.
Essential features of the new remunerative framework:
- Which facilities are eligible for the new remunerative framework?
- How is the REER allocated?
- How are the auctions conducted?
- How often are auctions held?
- What obligations do awardees have?
- What rights do awardees have?
- How is the REER financed?
- How long will the REER last?
Key contacts
Disclaimer
The articles published on this website, current at the dates of publication set out above, are for reference purposes only. They do not constitute legal advice and should not be relied upon as such. Specific legal advice about your specific circumstances should always be sought separately before taking any action.