|Policy Type:||Economic Instruments>Fiscal/financial incentives, Regulatory Instruments|
|Agency:||Ministry of Economy|
The Royal Decree 436/2004, passed in March of 2004, amends the previous Royal Decree (2818/1998) and is set up to fit into the existing general framework supporting RES-E as set out by the Electricity Act 54/1997, which is still in force. The Royal Decree 436/2004 provides incentives for new installed capacity of renewable energy sources in one of two ways:
1. Generators, who sell their production to a distributor, receive a fixed tariff that is defined as a percentage of a regulated tariff. The percentage is established on a technology by technology basis. The reference tariff for 2004, defined by Article 2 of Royal Decree 1432/2002, is indirectly based on the production market price, and has a value of EUR 0.072072/kWh.
2. Generators, who sell their electricity on the free market, receive the negotiated market price of electricity, an incentive for participating, and a premium, if eligible.
These tariffs remain in effect for the first 25 years, after which the fixed tariff for PV is reduced to 460% (PV < 100 kW) and 240% (PV > 100 kW) of the reference price.
|This record supersedes:||Royal Decree 2818/1998: "Special Regime"|
Last modified: Tue, 02 May 2017 18:13:12 CEST