January 11, 2019

Spain Sets 2020-25 Remuneration Rates for Renewables, Island Power


The Spanish Wind Energy Association (AEE) yesterday welcomed the Ministry for the Ecological Transition’s (MITECO) draft bill determining the rates of remuneration for renewable power, intended to guarantee reasonable profitability.

AEE said it is happy with the methodology used to calculate the remuneration rates for regulated activities of the electricity system in Spain, using the yield of the 10-year government bond as a base and increasing it with an appropriate differential.


MITECO presented a week ago the draft bill that sets the financial remuneration rate for the period 2020-2025 for renewable energy, cogeneration and waste-to-energy facilities, and for the transport, distribution and production of electricity on Spanish islands. For clean energy the level allows profitability of 7.09%, while for the distribution of electricity in non-peninsular territories that rate is 5.58%.

The draft bill also proposes that the remuneration rate currently in force for clean energy facilities hit by Royal Decree-Law 9/2013 will remain fixed by 2031. This is expected to prevent further litigation by investors whose projects were affected by the sudden cut to renewable energy subsidies announced back in 2013. MITECO said five out of the seven arbitration awards issued to date have been partially condemnatory and there are 35 more open international arbitration proceedings against Spain.

In the current regulatory period, the remuneration rate for renewable energy capacity, cogeneration and waste-to-energy is 7.503%, but for projects prior to Royal Decree-Law 9/2013 it stands at 7.389%.


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