On 26 June, the Ministry for the Ecological Transition and Demographic Challenge published a draft Royal Decree which will regulate the Remunerative Framework for Renewable Energy applicable to Electricity Generation Facilities (the “
draft Royal Decree”).
The draft Royal Decree implements the provisions of article 14.7 bis of the Spanish Electricity Sector Law 24/2013, of 26 December (“
LSE”), recently enacted by Royal Decree-law 23/2020, of 23 June, which approves measures in relation to energy and other areas to stimulate economic recovery (“
RDL 23/2020”), the main contents of which were analysed
here.
Article 14.7 bis LSE set out, in effect, that the Spanish Government could establish a new remunerative framework applicable to renewable energy, which would be added to the current framework and would have the following defining features: a) it will be based on a long-term fixed price for energy; b) it would be awarded by tendering procedures in which electricity, installed power capacity or a combination of both would be up for auction and tenderers would make bids for the price of the remuneration for the energy produced; and c) separate auctions may be held by technology on the basis, among other criteria, of their technical characteristics, scale, dispatchability, localisation or technological maturity.
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