Renewable energy policy database and support: single

Tenders (Régimen retributivo especifico)

Updated: 06.02.2019

Author: Moira Jimeno

The premium tariff or “specific remuneration regime” is not technically defined as a support scheme, but as a complementary retribution to allow renewable technologies to compete with traditional technologies in the energy market.

The specific amounts are based on a number of parameters, each calculated for a set of “standard plants”. The rationale behind the scheme is to provide developers an amount based on the “reasonable rentability” that a well-managed renewable plant would have. In order to determine such costs and values, a set of theoretical standard installations has been developed and their values calculated. Furthermore, these values are linked to the “reasonable rentability”, defined as the average yield of the State obligations to ten years in the secondary market for the 24 months prior to the month of May of the year preceding the start of the regulatory period increased by a spread (art. 19 RD 413/2014). On the basis of these results, an actual plant would receive the amount that its correspondent well-managed theoretical standard installation would receive.

The Royal Decrees 359/2017 and 650/2017 were approved to regulate the premium tariff (“Régimen Retributivo Específico”), aiming at supporting new renewable energy and new PV and wind energy plants, respectively, located in the mainland electricity system. The selected procedure to allocate the premium tariff has been a call for tenders regulated through Order ETU/315/2017 as amended by Order ETU/615/2017. The latter also approved the value of the different compensation parameters for the reference RES plants under the new remuneration regime or premium tariff.

Resolutions of 19 May 2017 and of 27 July 2017 from the General Direction for Energy Policy and Mining formally launched the renewable energy auctions, establishing their procedures, rules, costs and schedules.

The Royal Decree 15/2018 contains a few measures to ensure the implementation of the awarded projects under competitive tenders such as increase of the guarantees that RES projects developers have to pay to obtain access to the transmission network (40 €/kW installed, instead of the former 10 €/kW installed) and obligation for the project developer to prove progress in the implementation of the project at certain stages (Third additional disposition Chapter 2 RD 15/2018).

Eligible technologies and support requirements

Each call for tenders establishes which technologies are eligible through the Royal Decrees and Orders. New mainland PV and wind energy installations were eligible in the last auction called by Resolution of 30 June 2017 (Art. 1.1 and 2.1, RD 650/2017 and 3.2 of Annex I, Order ETU/615/2017)

Solar energy	PV plants (group b.1.1.) located in the mainland electricity grid were eligible (Art. 2.1, RD 650/2017).
Wind energy	Wind energy plants (group b.2.) located in the mainland electricity grid were eligible (Art. 2.1, RD 650/2017).

Solar energy

PV plants (group b.1.1.) located in the mainland electricity grid were eligible (Art. 2.1, RD 650/2017).

Wind energy

Wind energy plants (group b.2.) located in the mainland electricity grid were eligible (Art. 2.1, RD 650/2017).

Tender characteristics

Pre-qualification criteria	Only new installations are eligible (Arts. 2.1 and 2.2, RD 650/2017).
Bidding procedure	The tender has only one stage in a sealed bid format (Art. 9.2., Order ETU/315/2017 as amended by Order ETU/615/2017).
Tender constraints	The last auction round set a cap of 3000 MW of installed capacity to be tendered. It also established that the maximum limit can be increased if there are offers that have the same cost overrun as the last awarded bid provided that this cost overrun is null for the system and less than the value that is established in the confidential clause of the resolution by which the auction is called (Art. 1.1, RD 650/2017).
Pricing rules	All bidders receive the price that is a result of the lowest accepted discount rate (Art. 9.2., Order ETU/315/2017 as amended by Order ETU/615/2017).
Lead time	Plant operators that are inscribed in the pre-assignation registry are expected to realise all final works until 31 December 2019 (Art. 19 Order ETU/615/2017 in conjunction with Art. 46 RD 413/2014). In order to ensure the implementation of the projects, project developers have to prove progress milestones during the implementation of the projects. For this purpose, a regulation will establish the periods in which applicants must prove that they have made the requests for the environmental impact assessment and other authorizations as well as the terms in which they must obtain these authorizations (Third additional disposition of Chapter II RD 15/2018).
Frequency of tenders	No rule is set.

Addressees

Procedure

Process flow and deadlines	To compete in the call for tenders, developers must request a prequalification to Omel Diversificación S.A.U., according to the procedure set in Appendix II (Resolution of 10 April 2017 in conjunction with Resolution of 30 June 2017). Following the pre-qualification, developers must apply for a qualification, according to the procedure set in Appendix III (Resolution of 10 April 2017 in conjunction with Resolution of 30 June 2017). In addition, they must formalise a participation guarantee through Omel Diversificación. Following the referred procedure, developers may obtain the required qualification to participate in the auction. Winners of the competitive auction are then able to receive the premium tariff (“Régimen Retributivo Específico”), according to the following procedure: Developers will have to firstly present a guarantee in the form of a sum of money to the General Bank of Deposits (Art. 44 RD 413/2014). Following the deposit of a guarantee, developers must request to the General Direction of Energy Policy and Mines to be inscribed in the pre-assignation registry. The General Directorate has three months to process the application (Art. 45 RD 413/2014). Following the registration in the pre-assignation registry, a developer has maximum one month to request to the General Direction of Energy Policy and Mines to be inscribed in the benefit registry. The General Directorate has three months to process the application (Art. 47.1 RD 413/2014). The amounts will start to be granted from the latter one between the first day of the month following the date of final approval of the installation and the first day of the month following the date of enlisting in the registry of the scheme (Art. 28.1 RD 413/2014).
Competent authority	Ministry for the Ecological Transition (Art. 35.1 RD 413/2014); State Secretary of Energy (Resolution of 10 April 2017 and Resolution of 30 June 2017)

Process flow and deadlines

To compete in the call for tenders, developers must request a prequalification to Omel Diversificación S.A.U., according to the procedure set in Appendix II (Resolution of 10 April 2017 in conjunction with Resolution of 30 June 2017).

Following the pre-qualification, developers must apply for a qualification, according to the procedure set in Appendix III (Resolution of 10 April 2017 in conjunction with Resolution of 30 June 2017). In addition, they must formalise a participation guarantee through Omel Diversificación. Following the referred procedure, developers may obtain the required qualification to participate in the auction.

Winners of the competitive auction are then able to receive the premium tariff (“Régimen Retributivo Específico”), according to the following procedure:

Developers will have to firstly present a guarantee in the form of a sum of money to the General Bank of Deposits (Art. 44 RD 413/2014).

Following the deposit of a guarantee, developers must request to the General Direction of Energy Policy and Mines to be inscribed in the pre-assignation registry. The General Directorate has three months to process the application (Art. 45 RD 413/2014).

Following the registration in the pre-assignation registry, a developer has maximum one month to request to the General Direction of Energy Policy and Mines to be inscribed in the benefit registry. The General Directorate has three months to process the application (Art. 47.1 RD 413/2014).

The amounts will start to be granted from the latter one between the first day of the month following the date of final approval of the installation and the first day of the month following the date of enlisting in the registry of the scheme (Art. 28.1 RD 413/2014).

Competent authority

Ministry for the Ecological Transition (Art. 35.1 RD 413/2014); State Secretary of Energy (Resolution of 10 April 2017 and Resolution of 30 June 2017)

Penalties

Amount of the fee	The producer has to pay a participation guarantee of 60 €/kW.

Distribution of costs

State	Ministry for the Ecological Transition (6th final disposition RD 413/2014)
Distribution mechanism	The cost of the support scheme for electricity from renewable sources is first borne by the Ministry for the Ecological Transition (6th final disposition RD 413/2014).

State

Ministry for the Ecological Transition (6th final disposition RD 413/2014)

Distribution mechanism

The cost of the support scheme for electricity from renewable sources is first borne by the Ministry for the Ecological Transition (6th final disposition RD 413/2014).

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