Draft Law on Climate Change and Energy Transition

photovoltaic-system

On May 19, 2020, the Vice President for the Ecological Transition sent to the Congress of Deputies the Draft Law on Climate Change and Energy Transition (APLCCTE).

Thus, the APLCCTE begins its parliamentary process, for which it will receive the contributions of the different groups. This process, which will take from six months to one year, will culminate in the final approval of the Climate Change Law.

The text of the APLCCTE consists of 36 articles distributed in nine titles, establishing the overall governance framework that should serve to articulate the other policies and measures. The APLCCTE covers several sectors of activity, being the electrical system just one of them. The following is a summary of the main elements of the APLCCTE of interest to the photovoltaic sector.

Objectives
The text sets the following targets to 2030:
Emissions: reduction of at least 20% compared to 1990.
Renewables: at least 35% of final consumption and 70% of electricity generation
Efficiency: at least 35% reduction with respect to the trend scenario.

By 2050, the goal of climate neutrality (zero net emissions) and an electrical system “based, exclusively, on original generation sources renewable”.
In addition, the Council of Ministers is authorised to revise upwards the targets for both 2030 by 2050, to comply with the Paris Agreement, European Union regulations (EU), technological developments, or for other reasons, whether environmental, social or economic.

Energy and climate plans

The main tool for achieving the objectives will be the successive Plans Integrated National Energy and Climate Plan (PNIEC), the first already presented covering the period 2021-2030. A ‘Decarbonisation Strategy to 2050’ will also be approved by royal decree. Article 34 of the APLCCTE also provides for the Autonomous Plans of energy and climate, that the Autonomous Communities from 31 December of 2021 should inform MITECO in the Commission for the Coordination of Climate change.

Renewable energy auctions
The second final provision of the APLCCTE introduces an amendment to the Act 24/2013 of the Electricity Sector whereby a new paragraph 7.a is added to Article 14 (Remuneration of activities) allowing the holding of auctions of renewable for a price for the energy generated:

  • “7.bis) […] the Government will develop anotherwind parkremuneration framework for the generation of electricity from renewable energy sources, based on the long-term recognition of a fixed price for energy.
  • This remuneration framework will be granted through competitive competition in which the product to be auctioned will be energy installed power or a combination of both and the variable on the one that will be offered will be the price of retribution of that energy.
  • In competitive tendering procedures, a distinction may be made between different generation technologies according to their technical characteristics, levels of manageability, location criteria, technological maturity and those others that guarantee the transition to a decarbonized economy, in accordance with Community regulations.”

As mentioned, the parliamentary processing of the APLCCTE can be extended in the time of six months to a year.

Renewable Gases
Article 10 of the APLCCTE states that the Government shall approve specific plans for renewable gases (including biogas, biomethane, hydrogen and others) by promoting their penetration.

It is also mentioned that these plans may include:
– Annual renewable gas penetration targets.
– Measures to promote the injection of renewable gases into the natural gas network.
– A certification system.

Revenue from the electricity system
Article 26 of the APLCCTE states that at least 450 million from the auctions of greenhouse gas emission allowances will be used to finance the costs of the electricity system, relating to the promotion of energy renewable.

Likewise, the fifth final provision of the APLCCTE introduces an amendment to the Law 15/2012 of tax measures specifying that the revenue relating to these taxes shall be carried out “by means of monthly drawdowns for a maximum amount of effective collection of such taxes and fees, in the month immediately preceding.

Transition Strategy
Article 24 of the APLCCTE states that the Government shall approve every five years Transition Strategies as proposed by MITECO and other ministries. The ETJ will include an analysis of opportunities and proposals for industrial policies, R&D&I and occupational training, among others. The APLCCTE also contemplates the elaboration of the Transition Agreements (article 25) and the elements that they should include.

Find here the Draft Law Climate Change and Energy Transition

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