Monday, 13 November 2017
The European Commission has found the Spanish scheme supporting electricity generation from renewable energy sources, high efficiency cogeneration of heat and power and waste to be in line with EU State aid rules. The scheme has been in place since 2014 and includes new projects as well as renewable energy power projects benefitting from previous support. In 2016, the annual payments under the scheme amounted to €6.4 billion.
Since 2016, support to new facilities is granted through competitive auctions. Different technologies have competed with each other in the latest auctions of May 2017 and July 2017. In total, support for capacity of slightly more than 8 gigawatts was awarded, essentially to wind and solar panel plants. As a result of these auctions, beneficiaries will receive compensation only if, in the coming years, the market price drops to a level significantly below today's market prices. This protection against an unexpectedly sharp fall in market prices helps develope...