The Spanish Government has published the Regulation on the granting of investment aid for wind and photovoltaic electricity generating installations in the Canary Islands and the Balearic Islands, co-financed by the ERDF. Last week, the government approved 120 million renewable energy projects, 80 million for the Canary Islands and 40 million for the Balearic Islands. According to the Ministry, this will allow at least 180 megawatts (MW) of renewable energy to be absorbed into the Autonomous Community.
The electricity networks of non-fixed areas are subject to special rules in accordance with Article 10 of Law 24/2013 of 26 December on the electricity sector. The characteristics of electricity systems in non-fixed landlocked areas in relation to the mainland make it difficult to integrate electricity generation from renewable energy sources due to their characteristics, small size and remoteness. The demand for electricity is largely met by thermal fossil fuel technologies, although the share of renewable energy sources remains low.
While the share of electricity generated from renewable energy sources on the mainland was 40.2% in 2016, this share was around 6% in the non-forestland. In order to make progress towards achieving the mandatory targets of Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources, it is considered appropriate to establish wind and photovoltaic installations that contribute to the diversification of primary energy sources, the reduction of energy dependence and the reduction of CO2 emissions. On the other hand, although the activity of electricity generation from renewable energy sources generates revenue from the sale of energy on the market, it is not sufficient to cover its investment costs and avoid a financing deficit, which makes it necessary to grant public aid.
For the reasons set out above, and in order to ensure the installation of wind and solar power plants in non-mainland areas, the current basis for the granting of investment aid for the above mentioned plants is established. This aid is granted in the form of a grant in accordance with the provisions of General Law 38/2003 of 17 November 2003 on Subsidies. The ordinary procedure for granting subsidies on a competitive basis in accordance with the provisions of Article 22(1) of the Act shall apply.
