The Royal Decree-Law seeks to establish a safe and modern legal framework that guarantees certainty and stability in the energy system. The new system offers the developer a price for long-term energy that guarantees the foresee ability and stability of income for investors and allows participation under equal conditions, whatever their size.

https://greendealflow.com/renewable-energy-projects-in-spain-new-regulation

Based on the new remuneration framework included in the RDL 23/2020 and for its draft Royal Decree determines the rules for the auctions and also a new Economic Regime of Renewable Energies (“new Economic Regime”). The new Economic Regime tray to transfer is the reduction of costs from the technological advances in renewable facilities to the consumers. New Economic Regime is composed by the following main characteristics:

1. In the auctions, bids shall be made for the price of the electrical energy, expressed in €/MWh, and the product to be auctioned shall be awarded by applying a pay-per-bid mechanism. Each successful bid implies that the awarded price will be coincides with its bid price.
2. The price received by the producers under the new Economic Regime for each negotiation period, per unit of energy sold in the daily and intraday markets, will be calculated from the auction price.
3. In those negotiation periods in the that the price on these markets is less than the exemption price of collection established in the call of the auction, the price received will be the result of the matching of two markets. Exemption price of collection means the daily and intraday market price above which the energy is accounted for and remunerated at its award price, or by contrast, for market values equal to or less than that price, energy is not counted as auction energy and is remunerated at the market price.
4. Alternatively, it can be established that the price resulting from the auction will be corrected with incentives for the successful bidder to participate in the market, introducing a certain exposure of the renewable facilities to the electricity market. In this way, the aim is to optimise the integration of renewable energies into the system and maximized savings for the electricity bill.
5. Additionally, the price received by the renewable producers under the new Economic Regime for its participation in markets other than the daily and intraday market will be directly derived from their participation in those markets (mainly markets for balancing and adjustment services).

Areas with the highest number of sunshine hours in Spain

Published by Fernando Forte, Feb 17, 2020

This sunshine stays mainly in southern, coastal and insular areas of Spain, with Huelva topping the list of sunniest Spanish cities at over 3.5 thousand sunshine hours. Malaga, Almeria, Alicante or Tenerife also made the list, all of them with over three thousand hours of sunshine in 2017.

https://www.statista.com/statistics/1005722/areas-with-most-sunshine-hours-registered-spain/

GREEN GOLD FOR ANDALUCIA

With so many thousands of hours of sun per year, southern Spain is the ideal place to install solar energy panels. What’s more, thanks to new government program that oblige the electricity company to buy any solar energy you generate, this can be an ideal option for investors in solar energy in Spain.

So everything is ready for a smart investment in solar electricity production in south of Spain as the area has the most solar hours in Europe with an average of 2900 Solar hours during past 5 years.

For getting more information about the investment opportunities in solar energy parks in Andalucia, Spain, please contact us.