Legal sources on renewable energy: Single

Price regulation (Régimen Especial)

Updated: 22.01.2009

In Spain, the generation of electricity from renewable sources is mainly promoted through a price regulation.

System capacity must not exceed 100 MW. Only systems whose capacity does not exceed 100 MW are eligible. The system capacity shall also be within the statutory maximum capacities regarding the respective source of energy.
Guaranteed Feed-in tariff for solar power. Electricity generated by photovoltaic systems shall be purchased at a guaranteed feed-in tariff, which is adjusted for new systems every quarter.
Right to choose for systems that generate up to 50 MW. Operators of systems that generate electricity from renewable sources other than photovoltaic energy and whose capacity does not exceed 50 MW may choose between the guaranteed feed-in tariff and a bonus, which is paid on top of the price derived on the free market.
Bonus for systems that generate 50 to 100 MW. Operators of systems whose capacity is 50 to 100 MW are only entitled to a bonus for the electricity they produce.
Premium. The use of reactive energy and high system efficiency are rewarded with a premium.

Promoted technologies

In Spain, all technologies are generally eligible, with the following exceptions:

Technology-specific capacity limits. If the market cap set by the government for the respective system type is reached, the exceeding amount of electricity will not be eligible for subsidies (art. 22, 35-42 RD 661/2007; arts. 5, 10 RD 1578/2008).
System-specific capacity limits. All systems that generate electricity from renewable sources and whose installed capacity does not exceed 100 MW are eligible for promotion (art. 27.1 Ley 54/97; art. 45 RD 661/2007). Systems whose capacity exceeds this limit are not eligible.
Direct sales. In pursuance of the special regulation, electricity that is transferred and sold directly is not eligible for subsidies (§ 24 par. 3 RD 661/2007).

Wind energy	Both onshore and offshore wind energy systems are eligible until the market cap of 20,155 MW of installed capacity is reached (arts. 2, 38 RD 661/2007).
Solar energy	Both photovoltaic and solar-thermal electricity generation (art. 2 RD 661/2007) are eligible, if the system capacity does not exceed the following limits: Systems registered in the register of systems prior to 29.09.2008. 371 MW for photovoltaic, 500 MW for solar-thermal systems. Systems registered in the register of systems after 29.09.2008. The capacity limits for the different system types are re-defined as part of the application procedure every quarter (art. 5 RD 1578/2008, Annex III RD 1578/2008). Prior to the conclusion of an application procedure, the market caps specified for each system type are published on the website of the Ministry of Industry, Tourism and Trade (Annex III RD 1578/2008).
Geothermal energy	Eligible, including hot-dry-rock energy (art. 2 RD 661/2007). Statutory law does not specify a market cap.
Biogas	Eligible, if the main fuel is bio-fuel or biogas from anaerobic digestion of agricultural and livestock wastes, bio-degradable industrial waste and sewage sludge or landfill gas. Biogas and biomass together are eligible for subsidies until the cap of 250 MW is reached (arts. 2, 41 RD 661/2007).
Biomass	Eligible, if the main fuel is biomass from manure, energy crops, agricultural and garden wastes, forest management or other activities related to forest and land management. Biomass and biogas together are eligible for subsidies until the total capacity reaches 250 MW (art. 2 RD 661/2007).
Hydro-electricity	Systems whose primary source of energy is wave energy, tidal energy, ocean thermal energy and ocean current energy are eligible. Traditional hydro-electric stations are also eligible, if their entry capacity does not exceed 50 MW (arts. 2 b) 3, 45.2 RD 661/2007). Hydro-electricity systems that generate up to 10 MW are eligible for subsidies until the market cap of 2,400 MW is reached (art. 40 RD 661/2007).

Area of application

National	In Spain, only electricity generated on national territory, i.e. on the Spanish mainland and on the Spanish islands, is eligible.
International	Systems outside Spain are not eligible.

Legal basis/ addressees

statutory basis
contractual basis

The basis for the claim for payment is statutory law.

Entitled party	The persons entitled are those system operators that meet the following requirements: Systems shall come under the special regulation. The system in question shall come under the definition laid down by the special regulation (art. 17 RD 661/2007 in connection with art. 2 par. 2 nr. 2 b RD 661/2007). Systems come under this definition if they meet the following requirements: Technology. The primary source of energy used by the system in question shall be a renewable source as specified by the regulation (art. 2 par. 1 nr. 2 b RD 661/2007). Official classification. Systems shall be classified as coming under the special regulation by official notice (arts. 6, 8, 14 par. 1 RD 661/2007). Connection to a central control system. All systems that generate electricity as specified by the special regulation and whose capacity exceeds 10 MW shall be connected to a central control system, which shall be the interface with the system operator. The control system shall provide real-time system information and make sure that the system operator's instructions are implemented in such a way as to guarantee the reliability of the grid. Register of systems. Systems shall be definitely registered in the register of systems. The register of systems is an official register kept by the Ministry of Industry, Tourism and Trade (art. 9 RD 661/2007). Autonomous regions may also keep such a register (art. 10 RD 661/2007). Registration of a system in the register of systems is usually carried out in two steps: Preliminary registration. On request at the authority in charge, the system is preliminarily registered. The authority issues a notice on the registration. To be preliminarily registered, the applicant shall present the document on commencement of trial operation and prove that the technical contract with the grid operator on access to the grid has been concluded (art. 11 RD 661/2007). Preliminary registration is cancelled if final registration is not applied for within three months after the issuing of the notice on preliminary registration (art. 13 RD 661/2007) Definite registration.On request at the authority in charge, the system is definitely registered in the register of systems. The authority shall decide on the registration within one month after the application (art. 12.2 RD 661/2007). The authority shall issue a notice on the registration (art 12.3 RD 661/2007.) One of the preconditions for the definite registration is the presentation of the document on commencement of regular operation of the system (art. 132 RD 1955/2000; art. 12.2 RD 661/2007). Register of systems entitled to the feed-in tariff (photovoltaic systems only). Photovoltaic systems registered in the register of systems after 29.09.2008 are eligible for promotion only if they have also been admitted to a part of the register of systems called "the register of systems entitled to the feed-in tariff". This register aims at selecting systems for the feed-in tariff until the annual market cap for electricity from photovoltaic sources is reached. The systems are selected chronologically, i.e. the system that has been entitled the longest according to the documents submitted in the course of the application for registration is selected first (art. 6 RD 1578/2008). If the cap is not reached in one year, the remaining capacity may be used in a subsequent year.
Obligated party	The persons obligated are the operators of distribution and transmission grids (depending on the level at which electricity is fed in), (art. 17 RD 661/2007).

Entitled party

The persons entitled are those system operators that meet the following requirements:

Systems shall come under the special regulation. The system in question shall come under the definition laid down by the special regulation (art. 17 RD 661/2007 in connection with art. 2 par. 2 nr. 2 b RD 661/2007). Systems come under this definition if they meet the following requirements:

Technology. The primary source of energy used by the system in question shall be a renewable source as specified by the regulation (art. 2 par. 1 nr. 2 b RD 661/2007).
Official classification. Systems shall be classified as coming under the special regulation by official notice (arts. 6, 8, 14 par. 1 RD 661/2007).
Connection to a central control system. All systems that generate electricity as specified by the special regulation and whose capacity exceeds 10 MW shall be connected to a central control system, which shall be the interface with the system operator. The control system shall provide real-time system information and make sure that the system operator's instructions are implemented in such a way as to guarantee the reliability of the grid.

Register of systems. Systems shall be definitely registered in the register of systems. The register of systems is an official register kept by the Ministry of Industry, Tourism and Trade (art. 9 RD 661/2007). Autonomous regions may also keep such a register (art. 10 RD 661/2007). Registration of a system in the register of systems is usually carried out in two steps:

Preliminary registration. On request at the authority in charge, the system is preliminarily registered. The authority issues a notice on the registration. To be preliminarily registered, the applicant shall present the document on commencement of trial operation and prove that the technical contract with the grid operator on access to the grid has been concluded (art. 11 RD 661/2007). Preliminary registration is cancelled if final registration is not applied for within three months after the issuing of the notice on preliminary registration (art. 13 RD 661/2007)
Definite registration.On request at the authority in charge, the system is definitely registered in the register of systems. The authority shall decide on the registration within one month after the application (art. 12.2 RD 661/2007). The authority shall issue a notice on the registration (art 12.3 RD 661/2007.) One of the preconditions for the definite registration is the presentation of the document on commencement of regular operation of the system (art. 132 RD 1955/2000; art. 12.2 RD 661/2007).

Register of systems entitled to the feed-in tariff (photovoltaic systems only). Photovoltaic systems registered in the register of systems after 29.09.2008 are eligible for promotion only if they have also been admitted to a part of the register of systems called "the register of systems entitled to the feed-in tariff". This register aims at selecting systems for the feed-in tariff until the annual market cap for electricity from photovoltaic sources is reached. The systems are selected chronologically, i.e. the system that has been entitled the longest according to the documents submitted in the course of the application for registration is selected first (art. 6 RD 1578/2008). If the cap is not reached in one year, the remaining capacity may be used in a subsequent year.

Obligated party

The persons obligated are the operators of distribution and transmission grids (depending on the level at which electricity is fed in), (art. 17 RD 661/2007).

Payment scheme

Guaranteed payment	Except for operators of solar power systems, system operators may choose between two feed-in tariffs. A system operator's decision is binding for one year (art. 24, art. 26 par. 3 RD 661/2007). Guaranteed feed-in tariff. RD 661/2007 provides guaranteed tariffs in terms of state-regulated minimum tariffs for each source of energy (arts. 35, -43 RD 661/2007). Variable feed-in tariff. Operators of hydro-electricity and biomass systems may also opt for a variable, time-dependent tariff, which is set by statutory law. This tariff is composed of different elements, which depend on the time of day and the season (art. 26 RD 661/2007 in connection with First Final Provision of RD 1578/2008).
Bonus	Except for the operators of solar power systems, system operators may choose from two types of bonus as an alternative to the feed-in tariff (art. 24 RD 661/2007). Guaranteed premium. System operators may choose a guaranteed premium, which is paid on top of the fluctuating price for electricity derived on the free market (art. 27 par. 1 RD 661/2007). Variable premium. Except for geothermal systems, all systems are eligible for a variable premium. The amount of premium depends on a reference market price for electricity (art. 27 par. 2 RD 661/2007). Some system types shall not exceed or fall below a certain amount of reference price and premium. In either event, the price may be adjusted (art. 27 par. 2 RD 661/2007).
Criteria for amount of payment	The amount of payment depends on the efficiency of operation of the systems and on the cost of the technology, the proportion of electricity generated with this technology in the total technology-specific capacity set by the special regulation, the effects of the amount of payment on the technological and economic development of the RES sector and the cost of capital in the financial market (art. 44 RD 661/2007).
Limitations/deadlines	Feed-in tariff for the actual period of operation. The feed-in tariffs are paid during the entire time of operation of a system. The payment starts on the date of commissioning of the system. It is reduced after a certain period of operation specified by statutory law (photovoltaic energy, hydro-electricity: 25 years; wind energy, geothermal energy: 20 years; biomass: 15 years). 25 years for solar power systems. Photovoltaic systems registered in the register of systems after 29.09.2008 are eligible for the tariff for a maximum of 25 years (art. 11 RD 1578/2007). During the period of payment, the feed-in tariffs are subject to adjustments (art. 44 RD 661/2007, art. 12 RD 1578/2008). Bonus for a limited time of operation. Eligibility for the payment of a bonus ends after 15, 20 or 25 years of system operation, depending on the source of energy used (see above: Feed-in tariff).
Amount	The amount of payment differs according to source of energy (arts. 35, -44 RD 661/2007). The guaranteed feed-in tariffs for the individual renewable energy sources are listed below and are for your guidance only. Recent adjustments have not been taken into account for technical reasons. Wind (onshore). for 20 years: 7.3228 €ct/kWh from the 21^st year onwards: 6.12 €ct/kWh Solar (photovoltaic energy), registered in the register of systems prior to 29.09.2008. for 25 years: 22.9764 – 44.0381 €ct/kWh (depending on the system size) from the 26^th year onwards: 18.3811 – 35.2305 €ct/kWh (depending on the system size) Solar (photovoltaic energy), registered in the register of systems after 29.09.2008 (art. 11 RD 1578/2008). for 25 years: 32 – 34 €ct/kWh (depending on system size and system site) Solar energy (solar-thermal generation). for 25 years: 26.9375 €ct/kWh from the 26th year onwards: 21.5498 €ct/kWh Geothermal power. for 20 years: 6.89 €ct/kWh from the 21^st year onwards: 6.51 €ct/kWh Biomass. for 15 years: 10.754 – 15.889 €ct/kWh (depending on energy source and system size) from the 16^th year onwards: 8.066 – 12.347 €ct/kWh (depending on energy source and system size) Hydro-electricity (up to 10 MW). for 25 years: 7.8 €ct/kWh from the 26^th year onwards: 7.02 €ct/kWh System capacities of 10 -15 MW are subject to the formula laid down in art. 36 RD 661/2007.

Funding

Consumer	The costs of the feed-in tariff and the bonuses for electricity from renewable sources are borne by the consumers.
Distribution mechanism	Grid operator. The cost of the feed-in tariffs for electricity from renewable sources is first borne by the grid operator. Consumers. The grid operator may pass on this cost to the consumers in the form of surcharges (arts. 4, 5, 6 RD 2017/1997). Balancing the grid operator's costs. At the end of every month, the grid operator shall balance his additional income and additional expenses (for the payment of tariffs to the system operators). If the energy supplier's balance results negative, the deficit is covered by the National Energy Committee (CNE), (art. 30 RD 661/2007; arts. 4, 5, 6 RD 2017/1997).

Consumer

The costs of the feed-in tariff and the bonuses for electricity from renewable sources are borne by the consumers.

Distribution mechanism

Grid operator. The cost of the feed-in tariffs for electricity from renewable sources is first borne by the grid operator.
Consumers. The grid operator may pass on this cost to the consumers in the form of surcharges (arts. 4, 5, 6 RD 2017/1997).
Balancing the grid operator's costs. At the end of every month, the grid operator shall balance his additional income and additional expenses (for the payment of tariffs to the system operators). If the energy supplier's balance results negative, the deficit is covered by the National Energy Committee (CNE), (art. 30 RD 661/2007; arts. 4, 5, 6 RD 2017/1997).

Control mechanisms

In Spain, several control mechanisms aim at preventing financial abuse and at guaranteeing that the costs related to the promotion of renewable energy are handled in a transparent manner and in a way that best protects consumers. Among others, the following mechanisms have been established:

Register of systems. This is a register of all renewable energy systems subsidised under the "Régimen Especial" (art. 9-15 RD 661/2007th). Registration in the register of systems is a precondition for entitlement to the feed-in tariff.
Obligation to report. All operators listed in e register of systems have the obligation to report. They shall submit to the authorising authority a report on the precedent year of operation within the first quarter of each year (art. 19 RD 661/2007).
Official audits. Photovoltaic systems registered in the register of systems after 20.09.2008 may become subject to an audit of their compliance with the legislation (art. 14 RD 1578/2008).

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Legal sources on renewable energy