New regulation affecting solar thermoelectric and wind power installations in Spain

The new Royal Decree (RD 1614/2010) which governs and modifies certain aspects of electricity generation activities in Spain which use solar thermoelectric and wind power technologies, dated December 7th and published in the Official State Gazette (BOE) on December 8th, 2010, is the response of the Government to try to contribute to the economic sustainability of the system. The new Royal Decree came into force on December 9th, 2010.

This new Royal Decree reduces temporarily the retribution of certain wind power installations. The reduction will apply to installations under Royal Decree 661/2007 and those whose power capacity exceeds 50 MW. However, it would not apply to wind power installations under Disposición Transitoria Primera of the Royal Decree 661/2007 dated May 25th, if they decided to remain under the Royal Decree 436/2004 dated March 12th. It would neither apply to installations registered in the RIPRE (Registro de Instalaciones de Producción en Régimen Especial) before May 7th, 2009.

The reduction of the premiums adds up to 35% and it will last until December 31st, 2012. The reduction will start on January 1st, 2011. Wind power installations affected by this reduction will recover by January 1st, 2013 the updated value of the premiums established by the Orden ITC/351/2009.

Solar thermoelectric power installations can no longer choose between being under a tariff retribution system or under a premium retribution system. These installations are compelled to be under the tariff retribution system during their first 12 months after obtaining the definitive start-up certificate.

These are the main modifications provided by the new Royal Decree. However, we would like to stress that this new Royal Decree is only a temporary measure which modifies certain aspects of the current Royal Decree 661/2007. Meanwhile, the Government will try to pass a new Royal Decree which will substitute the Royal Decree 661/2007 and apply to future installations.

For additional information on the regulation of solar and power installations in Spain,

Please note that this article is not intended to provide legal advice.

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