Factsheet: Decrees on Renewable electricity

Decrees on Renewable electricity

Key Information
Full name of Instrument & Measure (English): 
Royal Decree-Law 9/2013, adopting urgent measures to guarantee the financial stability of the electricity system. Law 24/2013, on Electricity Sector. Royal Decree 413/2014, dated 6 June, regulating electricity production from renewable energy sources, cogeneration and wastes. Ministerial Order IET 1045/2014, dated 16 June, approving the remuneration parameters for standard facilities, applicable to certain electricity production facilities based on renewable energy sources, cogeneration and wastes.
Full name of Instrument & Measure (native language): 
Real Decreto-Ley 9/2013, por el que se adoptan medidas urgentes para garantizar la estabilidad financiera del sistema eléctrico. Ley 24/2013, del Sector Eléctrico. Real Decreto 413/2014, de 6 de junio, por el que se regula la actividad de producción de energía eléctrica a partir de fuentes de energía renovables, cogeneración y residuos. Orden IET/1045/2014, de 16 de junio, por la que se aprueban los parámetros retributivos de las instalaciones tipo aplicables a determinadas instalaciones de producción de energía eléctrica a partir de fuentes de energía renovables, cogeneración y residuos.
Description: 
In Spain, the generation of electricity from renewable sources is mainly promoted through a price regulation system. Plant operators may choose between two options: a guaranteed feed-in tariff and a guaranteed bonus (premium) paid on top of the electricity price achieved on the wholesale market. The price regulation system is currently phased out through Real Decreto-ley 9/2013. Royal Decree-Law 9/2013 establishes, among others, rules for the remuneration system applicable to electricity production facilities using renewable energy sources, cogeneration and wastes. This Royal Decree-Law repeals the former regulation (Royal Decree 661/2007) which lied in a feed-in tariff system. Law 24/2013 maintains the rules that were established by Royal Decree-Law 9/2013. Renewable power plants will receive the market price and they will be entitled to additional remuneration which, based on standard investment and operating costs, will allow them to reach given returns. These returns, calculated for “efficient and well-managed companies,” will be reviewed every six years. The remuneration parameters, which will also be modified every six years, will depend on the Royal Decree that will set the framework for these plants, and on the approved standard values applicable to each technology. Royal Decree 413/2014 establishes the new remuneration scheme, with a goal of achieving for investors a reasonable rate of return on their investments through the specific remuneration in addition to the electricity market price. calculation of the new remuneration regime will be carried out on the basis of the standard costs and revenue (initial investment, operation, and revenue from the sale of power) that would correspond to a “standard power plant, over the useful regulatory life thereof and based on the business activity that would be carried out by an efficient and well-managed company". Ministerial Order 1045/2014 establishes equivalences between different generation facilities and standard facilities, defining the initial investment, revenue and standard operating costs as well as the regulatory lifespan applicable to such generation facilities, to be determined by those for the standard facility to which they are likened.
Goal/Aim: 
Stimulate electricity from renewable sources, cogeneration and waste

Sector/Topic targeted:

Responsible Authority: 
Ministerio de Industria, Energía y Turismo (MINETUR) - Ministry of Industry, Energy and Tourism

Status:

Year Instrument & Measure Started: 
2013
Year Last Instrument & Measure was last Amended: 
2014