Spanish Government Publishes New Regulation On Renewable Energy Electricity Generation Activity

Regulation eliminates distinction between ordinary and special regime facilities and establishes new remuneration system.

Introduction -

As part of the Spanish government’s ongoing structural reform of the energy industry, a regulation was passed on June 10, 2014, effectively establishing a new remunerative regime. This new regime will have significant implications for power plants producing electricity from renewable energy sources, cogeneration, and waste.

Background -

The Spanish government has completed a structural reform of the energy industry, establishing a new regulatory framework that aims to reduce and control one of the main problems of the Spanish energy sector: the ‘tariff deficit.’ The reform, which started with the enactment of Royal Decree-Law 9/2013 of July 13, 2013 (RDL 9/2013), whereby certain urgent measures were taken to ensure the financial stability of Spain’s electrical system, was finally defined by the new Electricity Sector Law 24/2013 of December 26, 2013 (Electricity Sector Law).

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