Spanish government wants to make Spain a pioneer in the field of renewable energies

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published on 15th June 2020

 

The new Spanish government coalition wants to make Spain a pioneer in the field of renewable energies. The draft of the climate protection law (Ley de Cambio Climatico) provides for new auctions of 3,000MW annually, among other things. However, the bill will probably not pass parliament and congress before the end of 2020 and it remains to be seen to what extent it will be changed.


As soon as this week, however, a bill is due to be brought before parliament and be passed yet in April, requiring energy-intensive Spanish companies to cover 10 percent of their electricity consumption through green power purchase agreements (PPAs). The PPAs must have a minimum duration of five years and are protected against the companies’ payment default by a guarantee fund of the Spanish state.


According to the new definition of energy-intensive companies, there will be about 610 of such companies in Spain, whose total electricity consumption represents 17 percent of national demand (about 40,000 GWh/year).


According to the bill, futures contracts will be secured by the State through funds and guarantees to the tune of EUR 90 million, issued by the Spanish Company of Export Credit Insurance (Compañía Española de Seguros de Crédito a la Exportación - CESCE).

The aim of the bill is to invigorate the PPA market and reduce the electricity price in order to keep up with prices in France and Germany, where the price is lower by EUR 10 and EUR 17 per MWh, respectively.


In view of the recent pressure on electricity market prices in Spain, the bill opens doors for a further sales opportunity for Spanish PV system operators as an alternative to selling as a pure merchant producer.

 

 

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