Authorisation for the right to receive the return on operation for high-efficiency cogeneration facilities using renewable fuels or natural gas

Source: IEA/IRENA Renewables Policies Database
Last updated: 5 November 2019
The high-efficiency cogeneration, which uses renewable fuels, natural gas or low-emission fuels, is an important tool for improving energy efficiency and reducing emissions in industrial uses of energy. Faced with the upcoming end of the statutory useful life of a significant portion of the cogeneration installations currently in use, it becomes necessary to establish an authorisation, which makes it possible to extend its useful life. In this way, the said capacity will remain in operation, while also avoiding the need to allocate considerable financial resources to replace it at a time when funding is going to become a scarce resource.
Therefore, the Royal Decree-Law 20/2018, of 7 December, on urgent measures to boost economic competitiveness, stipulates that high-efficiency cogeneration facilities using renewable fuels or natural gas, which reach the end of their useful life after 1st January 2018, could receive the rate for return on operation corresponding to their facility type for the energy produced since 8th December 2018 (entry into force of Royal Decree-Law 20/2018), up to a maximum of two years.

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