Royal Decree Law 1/2012 on revocation of public financial support for new electricity plants from renewable energy sources, waste or CHP

Country / jurisdiction: Spain · Year: 2012 · Status: In force · Level: National · Type: Voluntary

The remuneration pre-assignment registry processes will be temporarily cancelled. The financial support for new installations that produce electricity from renewable energy sources or waste, or for new CHP installations, will also be temporarily abolished. The actual installed capacity from wind power, solar thermal electric and notably that from solar photovoltaic has gone beyond the objectives set up in the Renewable Energy Plan (REP) 2005-2010. Hence, the costs of the financial support for the electricity from renewable energy sources have been significantly higher than had been anticipated. This situation together with the complex economic and financial current climate, advises the withdrawal of economic incentives for these installations, on a temporary basis, while the reduction of the system?s tariff deficit is achieved; this is, the difference between the income from transport and distribution grid access tolls, and regulated activity costs. The rule is not retroactive, meaning that it will not affect, neither power plants already running, or feed-in tariffs already authorised, or installations already registered within the pre-assignment registry. This action will not put at risk, neither the national security of supply, or the achievement of the national renewable energy targets set up by the European Union. The Government maintains its commitment to renewable energy as an essential part of Spain?s energy mix. In 2011, renewable energy covered 33% of the electricity demand, constituting Spain as one of the more advanced countries in this area.

Official source: http://www.boe.es/boe/dias/2012/01/28/pdfs/BOE-A-2012-1310.pdf