- MITECO proposed Royal Decree-Law has been approved by the country’s Council of Ministers in Spain
- It brings in measures for renewable energy auctions to be based on competitive price and avoid speculative requests
- It aims to remove barriers for renewable energy deployments in the country pushing for the country to move on its 100% renewable energy goal by 2050
Spain is walking the talk with the cabinet level clearance of its Royal Decree-Law to enable extensive renewable energy deployment in the country presenting itself as one of the most attractive European solar markets for investment today. As per the Council of Ministers, this will ensure Spain’s path to green recovery.
The Council of Ministers stamped their approval to the proposal of the Ministry for the Ecological Transition and Demographic Challenge (MITECO) steering the country towards its 100% renewable energy goal for its electricity system by 2050 with the interim target being 74% by 2030. It removes barriers to massive deployment of renewables, defines new business models and promotes energy efficiency, as per the ministry especially in the context of the country’s recovery after COVID-19 pandemic.
New Decree brings in the following measures:
- Overhauling the existing auction mechanism for renewable energy, the Decree establishes new measures to ensure viability of proposed projects in keeping with the availability of grid space to accommodate the power generated. Developers will need to obtain environmental clearance and administrative authorization before beginning construction or else the permits will expire. This will ensure speculative requests are avoided.
- Price of energy generated by the plants will be the cornerstone of auctions from now on to ensure predictability and income stability taking advantage of the technological advancements and falling costs of renewables.
- Renewable energy developers will not be required to get renewal of some authorizations in a bid to simplify and streamline the processing of renewable energy projects.
- New business models are to be incorporated including storage and hybridization of renewables with other technologies.
- Government aims to encourage research and development of renewables and other technologies.
Details of the measures to be adopted under the Royal Decree-Law can be viewed on MITECO’s website.
In May 2020, Spain’s cabinet of ministers approved the country’s Climate Change and Energy Transition Law that now awaits approval from the Parliament.