|Policy Type:||Economic Instruments>Fiscal/financial incentives, Regulatory Instruments|
|Agency:||Ministry of Economy|
Royal Decree 436/2004 was approved on 12 March 2004, and published in the Official Journal of the State on 27 March 2004, and establishes the methodology for updating and systematising the legal and financial regime of electrical energy production. The new system for renewable energy sources and combined heat and power (CHP) aims that by 2010, 30% of electricity production will be fuelled by renewable energy sources. This Royal Decree unifies the regulations for enacting Law 54/1997 on the Electrical Sector, providing the special regime with a new regulatory framework.
This new Royal Decree defines a system based on the free will of the owner of the installation, who can opt to sell the production or surplus of electrical energy to the distributor or directly on the market. If sold to the distributor, the owner of the installation receives a set payment in the form of a regulated rate, which is unique for all the periods of the programme, defined as a percentage of the average or reference electrical rate regulated in Royal Decree 1436/2002, of 27 December, which is therefore indirectly based on the production market price. Should the owner of the installation decide to sell his production or surplus directly on the market, he will receive the negotiated market price, plus an incentive for participating and a premium, if the installation is entitled to receive one. This incentive and the complementary premium are defined as a percentage of the average or reference electrical rate, although, in the enactment of the Royal Decree, this percentage is established on a case by case basis.
The Royal Decree 436/2004 improves the incentives for the first 200MW of solar thermal electricity production in Spain. Solar thermal electricity generators who cede their production to the distributor may receive as fixed tariff 300% of the reference price during the first 25 years after their startup and 240% afterwards. Solar thermal electricity generators who sell their electricity on the free market may receive a premium of 250% of the reference price during the first 25 years after their startup and 200% afterwards, plus an incentive of 10%.
|This record supersedes:||Royal Decree 2818/1998: "Special Regime"|
Last modified: Tue, 02 May 2017 18:13:12 CEST