Promotion of new business models in the energy sector in Spain

On 23 June, Spain approved Royal Decree-law 23/2020 on measures in the energy sector and other areas for economic recovery (the ‘RDL 23/2020’). As part of these measures to promote new business models in the energy sector, RDL 23/2020 provides for a higher level of regulation in the new forms of participation in the electricity system, completing the content of the previous legislation (Law 24/2013 of 26 December on the Electricity Sector).

The new business models in the energy sector are:

  • Storage
  • Hybridization
  • Aggregation
  • Renewable energy communities

New business models in the energy sector: storage

The owners of storage facilities (natural or legal persons) join the list of parties in an electricity system provided that:

  • Their installations use of electricity to a later time after its generation
  • They carry out the conversion of electrical energy into storable energy for its later reconversion into electrical energy.

The owners of these installations may obtain, directly or indirectly, through an independent aggregator, the income they are entitled to for their participation in the production market.

New business models in the energy sector: hybridization

RDL 23/2020 enables hybridization, i.e. access to the same point in the network of installations using different renewable primary generation technologies or incorporating storage facilities. This means the authorization of facilities with installed capacities greater than the access and connection capacities granted, so long the installation’s evacuation limits are respected. This measure marks the end of the existing restriction of not being able to exceed the maximum access capability.

New business models in the energy sector: aggregation

Another new feature of RDL 23/2020 is the regulation of the called “independent aggregator”, an intermediary in the electricity market that is not related to the client´s supplier but combines either the demand of several electricity consumers or the supply of several generators for sale.

This figure will introduce greater dynamism into the market at a time when the number of new parties in the energy sector is increasing.

New business models in the energy sector: renewable energy communities

Renewable energy communities enable the participation of citizens and local authorities in renewable energy projects, which will result in greater acceptance of these energies at the local level.

They represent a new way to generate, use, and manage energy at a local level through the cooperation of different agents: citizens, local administration, and SMEs. All of them, voluntarily and with cooperative participation, contribute to the creation of a decentralized and more efficient energy system, in which consumers can purchase energy at a stable price.

The intention of the RDL 23/2020, regarding new business models in the energy sector, is to eliminate administrative barriers, implementing at the same time a new legal framework to promote economic activity and competitiveness in this sector. All this constitutes, de facto, the opening of the market to new investors and parties.

Rebeca Pérez Yáñez

For further information regarding the new business models in the energy sector in Spain,

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

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