Country:Spain
Year:2007 (modified 2009)
Policy status:Ended
Jurisdiction:National
Date Effective:2007 (modified 2009)
Date Amended:

Last modification: 1st February, 2013, by Royal Decree-Law 2/2013

Policy Type:Economic Instruments>Fiscal/financial incentives>Grants and subsidies, Economic Instruments>Fiscal/financial incentives>Feed-in tariffs/premiums
Renewable Energy Policy Targets:Wind, Bioenergy, Bioenergy, Biomass for power, Geothermal, Hydropower, Ocean, Solar
Policy Sector:Electricity
Size of Plant Targeted:Small and Large
Climate Change Policy Targets:Energy Sector, Electricity Generation, Renewable, Energy Sector, Electricity Generation
Agency:National Markets and Competition Commision (CNMC)
URL:http://www.boe.es/buscar/pdf/2007/BOE-A-2007-10556-consolidado.pdf
Legal References:Royal Decree 661/2007 and Royal Decree 1578/2008
Enforcement:Registry system; Yearly reporting obligations; PV systems may be subject to audit since September 2008
Funding:By grid operator, costs passed on to customers; CNE covers deficit if required
Renewable Energy Description:

Royal Decree 661/2007, which was published on 26 May 2007, regulates the production of electricity under a special regime applicable to electricity produced from renewable energy sources. This royal decree supersedes Royal Decree 436/2004 of March 2004, establishing new tariffs and premiums for each kind of facility covered and incorporating renewable energy, waste to energy, hybrid systems and cogeneration plants into the special regime.

The cost of the regime is borne by the grid operator, who can pass on costs to consumers.

The grid operators costs are balanced monthly, and where there is a deficit this is covered by the National Energy Committee (CNE).

The new scheme generally applies to all technologies, with technology-specific and capacity-specific limits, as well as a combined feed-in tariff and feed-in premium scheme. Facilities with high system efficiency, or that use reactive energy, receive a bonus. Renewable energy facilities are covered by the special regime only if their installed capacity does not exceed 100 MW (50 MW for hydro facilities). Up to 50MW, operators can choose between receiving a feed-in tariff price, or a feed-in premium paid on top of the market electricity price. The feed-in tariffs are paid during the entire time of a systems operation, though these are reduced after a specified number of years. This period is 25 years PV, ocean and hydro systems, 20 years for wind and geothermal, and 15 years for biomass systems. Between 50 and 100MW, operators receive a bonus amount for the electricity produced. Solar PV systems are exempt from this arrangement; they receive guaranteed feed-in tariffs which are adjusted every quarter for new systems.

In September 2008, new tariffs and a new cap were established for solar PV. Systems registered prior to 29 September 2008 are eligible for a feed-in tariff of between approximately EUR cents 23/kWh and EUR cents 44/kWh (depending on system size). The installation cap of 371MW established by the law has been adjusted upwards to 500MW as of 2009, while the feed-in tariff has been reduced to EUR cents 32/kWh for ground systems and EUR cents 34/kWh for rooftop systems. A registry of systems eligible to receive the new tariffs has been established as of January 2009.

Guarantees for processing new applications: The decree provides that those requesting new production facilities in the special regime must present a guarantee for an amount equivalent to EUR 500/kW for the photovoltaic facilities or EUR 20/kW for all other facilities. Facilities holding a certificate for the definitive start-up of service before 1 January 2008 that opt to transfer, before 1 January 2009, electricity to the system in return for a regulated tariff will continue to be covered by Royal Decree 436/2004 for the lifetime of that facility.

Facilities holding a certificate for the definitive start up of service before 1 January 2008 that opt to sell, before 1 January 2009, energy on the market will also continue to be covered by Royal Decree 436/2004 - until 31 December 2012. Facilities using solar energy as raw material, however, are exempt from these exceptions.

Finally, the decree seeks to contribute to Spains efforts to achieve its 2010 national target for the promotion of electricity from renewable energy under EC Directive 2001/77/CE.

Climate Change Description:

The cost of the regime is borne by the grid operator, who can pass on costs to consumers.

The grid operators costs are balanced monthly, and where there is a deficit this is covered by the National Energy Committee (CNE).

The new scheme generally applies to all technologies, with technology-specific and capacity-specific limits, as well as a combined feed-in tariff and feed-in premium scheme. Facilities with high system efficiency, or that use reactive energy, receive a bonus. Renewable energy facilities are covered by the special regime only if their installed capacity does not exceed 100 MW (50 MW for hydro facilities). Up to 50MW, operators can choose between receiving a feed-in tariff price, or a feed-in premium paid on top of the market electricity price. The feed-in tariffs are paid during the entire time of a systems operation, though these are reduced after a specified number of years. This period is 25 years PV, ocean and hydro systems, 20 years for wind and geothermal, and 15 years for biomass systems. Between 50 and 100MW, operators receive a bonus amount for the electricity produced. Solar PV systems are exempt from this arrangement; they receive guaranteed feed-in tariffs which are adjusted every quarter for new systems.

In September 2008, new tariffs and a new cap were established for solar PV. Systems registered prior to 29 September 2008 are eligible for a feed-in tariff of between approximately EUR cents 23/kWh and EUR cents 44/kWh (depending on system size). The installation cap of 371MW established by the law has been adjusted upwards to 500MW as of 2009, while the feed-in tariff has been reduced to EUR cents 32/kWh for ground systems and EUR cents 34/kWh for rooftop systems. A registry of systems eligible to receive the new tariffs has been established as of January 2009.

Guarantees for processing new applications: The decree provides that those requesting new production facilities in the special regime must present a guarantee for an amount equivalent to EUR 500/kW for the photovoltaic facilities or EUR 20/kW for all other facilities. Facilities holding a certificate for the definitive start-up of service before 1 January 2008 that opt to transfer, before 1 January 2009, electricity to the system in return for a regulated tariff will continue to be covered by Royal Decree 436/2004 for the lifetime of that facility.

Facilities holding a certificate for the definitive start up of service before 1 January 2008 that opt to sell, before 1 January 2009, energy on the market will also continue to be covered by Royal Decree 436/2004 - until 31 December 2012. Facilities using solar energy as raw material, however, are exempt from these exceptions.

Finally, the decree seeks to contribute to Spains efforts to achieve its 2010 national target for the promotion of electricity from renewable energy under EC Directive 2001/77/CE.

Amended:

Modification of the remuneration system of regulated activities and the remuneration formula of the special regime facilities, with the intent to avoid the increase of the tariff deficit and that consumers bear these costs through higher electric tolls.


Main modifications:
Change in the updating of all the electric system costs: The methodologies for updating the remunerations, tariffs and premiums that were linked to the general Consumer Price Index (regulated activities such as transportation, distribution or the special regime -mainland costs, renewable energy and cogeneration-), will be updated applying said Index to constant taxes excluding unprocessed food and energy products.


Modification of Royal Decree 661/2007, of May 25: the remuneration through the price market + premium is eliminated (premium = 0 c€/kWh) and the upper and lower limits for all special regime technologies in which these concepts were not equal to zero. The remuneration of all the special regime facilities will be under the regulated tariff formula, unless the titleholder of the facility decides to perceive only the market price, but without a premium.


Before the entry into force of RDL 2/2013, facilities that were under the provisions of Royal Decree 1538/1987 of December 11, which determines the electricity tariff of the service management companies, could perceive a premium if they made a sufficient investment in the facility in order to increase the production capacity of electricity.

With the entry into force of RDL 2/2013, this premium is replaced by a regulated tariff.
Changes in the tariff to be received by certain facilities depending on the technology used.

Amended:

Modification of the remuneration system of regulated activities and the remuneration formula of the special regime facilities, with the intent to avoid the increase of the tariff deficit and that consumers bear these costs through higher electric tolls.


Main modifications:
Change in the updating of all the electric system costs: The methodologies for updating the remunerations, tariffs and premiums that were linked to the general Consumer Price Index (regulated activities such as transportation, distribution or the special regime -mainland costs, renewable energy and cogeneration-), will be updated applying said Index to constant taxes excluding unprocessed food and energy products.


Modification of Royal Decree 661/2007, of May 25: the remuneration through the price market + premium is eliminated (premium = 0 c€/kWh) and the upper and lower limits for all special regime technologies in which these concepts were not equal to zero. The remuneration of all the special regime facilities will be under the regulated tariff formula, unless the titleholder of the facility decides to perceive only the market price, but without a premium.


Before the entry into force of RDL 2/2013, facilities that were under the provisions of Royal Decree 1538/1987 of December 11, which determines the electricity tariff of the service management companies, could perceive a premium if they made a sufficient investment in the facility in order to increase the production capacity of electricity.

With the entry into force of RDL 2/2013, this premium is replaced by a regulated tariff.
Changes in the tariff to be received by certain facilities depending on the technology used.

Last modified: Tue, 02 May 2017 18:01:26 CEST