Energy Spain Newsflash 9102021 82519 AM
10 September 2021
NATIONAL MEASURES RELATING TO THE ELECTRICITY SECTOR
Second auction of the new economic regime for renewable energies
On 9 September 2021, the Resolution of 8 September, of the State Secretariat of Energy , convening the second auction for the granting of the renewable energy economic regime (REER), under the provisions of Order TED/1161/2020, of 4 December, was published in the Spanish Official Gazette.
In order to achieve the objectives of the Integrated National Energy and Climate Plan (PNIEC), and in accordance with the auction calendar established in Order TED/1161/2020 of 4 December, the State Secretariat of Energy has called for a second auction for the award of the REER, which will be awarded on a pay as bid basis.
The term for submitting of the documentation required for pre-qualification and qualification will be open from 13 September to 7 October 2021 and the auction will be held on 19 October.
The Resolution forecasts a total of 3,300 MW of power distributed in four groups: first, 600 MW for photovoltaic and wind facilities with accelerated availability; second, 300 MW for locally distributed generation photovoltaic facilities; third, 700 MW for photovoltaic facilities; and finally 1,500 MW for onshore wind technology. The remaining 200 MW will not be reserved for any specific technology.
Unlike the first auction, it is worth highlighting the reduction of the period within which the successful bidders must make the facilities available. Particularly noteworthy is the case of the projects corresponding to the accelerated availability group, which, according to the Resolution, should be available no later than 30 September 2022.
It has been also anticipated that another REER auction will be held this year, which will provide for a minimum of 200 MW of solar thermal, 140 MW of biomass and 20 MW of other technologies.
The content of the Resolution can be accessed here.
Biogas Roadmap (Hoja de Ruta del Biogás)
The Ministry for Ecological Transition and Demographic Challenge (MITERD) has agreed to submit the Draft Biogas Roadmap to a public consultation (audiencia pública).
This Biogas Roadmap identifies the challenges and opportunities for the progressive development of biogas in Spain, providing a series of measures aimed at promoting it within the energy transition defined in measure 1.8 of the PNIEC and section 12 of Law 7/2021, of 20 May, on Climate Change and Energy Transition.
The Biogas Roadmap's main lines of action include regulatory instruments, such as a scheme of guarantees of origin (GOs), the simplification of administrative procedures and the drafting of a guide for the processing of administrative authorisations. It also establishes biogas penetration targets and actions, such as those planned for green hydrogen, to use existing gas grids.
The deadline for submitting comments is 15 September 2021 and the content of the draft can be accessed here.
Draft Bill on the remuneration of non-emitted CO2 from electricity market
On 30 August 2021, the Council of Ministers sent to the Spanish Congress the Draft Bill on remuneration of non-emitted CO2 for the electricity market.
The Draft proposes cutting the income received by nuclear power plants, most hydroelectric plants and wind farms commissioned prior to the publication of Directive 2003/87/EC, which created the European CO2 market (ETS), due to the fact that the benefits received by these facilities do not correspond to reality, as they are non-emitters of CO2.
In order to determine the benefits to be deducted, the Draft Bill includes a mathematical formula that takes into account elements such as the electricity production of the aforementioned facilities and the price of CO2 in the ETS, based on its average value since the market was reformed in 2017 until the present day.
The content of the Draft Bill can be accessed here.
Draft Royal Decree on regulatory innovation in the electricity sector
The MITERD has agreed to submit the Draft Royal Decree on regulatory innovation in the electricity sector to prior public consultation (consulta pública previa).
The purpose of the Draft Royal Decree is to promote R&D&I through innovative pilot projects, studying their effectiveness without altering the operation or the economic and financial sustainability of the electricity system, through regulatory sandboxes.
The deadline for submitting allegations is 15 September 2021. The prior public consultation can be accessed here.
NATIONAL MEASURES RELATING TO THE GAS SECTOR
Circular 7/2021
The National Commission of Markets and Competition (CNMC) has approved its Circular 7/2021, of 28 July, which aims to regulate the mechanisms for the calculation, supervision, valuation and settlement of shrinkage balances (saldos de mermas) in the Spanish gas system facilities, including incentives to reduce gas shrinkages, as well as to define the information procedures in this regard among the agents affected.
The purpose of the Circular is to develop a methodology for calculating shrinkage for all gas facilities, consistent with the new system of operation and integration of the gas system. The Circular seeks to apply the principles of transparency and technical and economic efficiency and gives similar treatment to shrinkage balances, providing incentives for the reduction of actual gas losses.
The content of the Circular can be accessed here.
Report on the Proposed Order establishing the gas system charges and the remuneration and fees of underground storage facilities.
On 3 September 2021, the CNMC published its Report on the Proposed establishing the gas system charges, remuneration and fees for underground storage facilities. The Order will set these for the gas year 2022, beginning on 1 October.
The content of the Report can be accessed here.
Consultations on the new tolls structure
The CNMC has published an agreement answering and clarifying several queries regarding the new structure of natural gas tolls set forth by the Circular 6/2020, dated 22 July and published in the Spanish Official Gazette on 25 July 2020, which will be applicable as of 1 October 2021.
The content of the of the agreement can be accessed here.
