The Royal Decree 413/2014 was adopted on 6th of June 2014 and published in the Official Journal of Spain on 10th of June 2014. The Royal Decree entered into force on 11th of June 2014.
The Royal Decree states that the goal of the new remuneration scheme is to provide investors with a reasonable rate of return on their investments through specific remuneration in addition to the electricity market price. The new remuneration scheme will be open for those renewable, cogeneration and waste facilities that previously benefited from recognised feed-in tariff scheme as of 14th of July 2013. Those facilities will receive reasonable rates set to the average yield of ten years Government Bonds in the secondary market increased with a differential.
Regulatory periods of six years duration are established, covering the first regulatory period between the date of entry into force of Royal Decree-Law 9/2013, of 12 July and 31 December 2019. Each regulatory period regulatory is divided into two half periods of three years.
The addition to the payment for the sale of energy valued at market price, specific remuneration consists of a term per installed capacity unit covering, where appropriate, the costs of investment for each installation "type" that cannot be recovered by the sale of energy in the market, which is called retribution for investment, and a factor covering the operation , where appropriate, the difference between operating costs and income from the market share of this type of production facility, which is called pay for the operation.
For the calculation of the remuneration to the investment and the operation following factors will be taken into consideration:
- the standard revenue from the sale of energy valued at market price,
- standard operating costs necessary for the activity and
- standard value of the initial investment,
All under the concept of "efficient and well-managed company."
A set of compensation parameters to be approved by order of the Minister of Industry, Energy and Tourism will be established for each different type of facilities to be determined, facilities can be segmented according to their technology, electrical, power, seniority, etc.