New tariff regulation for the production of photovoltaic electrical energy (Royal Decree 1565/2010)

Royal Decree 1565/2010 seeks to modify the support framework provided for renewable energy projects by cutting financial support, especially to photovoltaic electricity production, improving the technical integration of renewable energy installations and easing administrative procedures. Government support for electricity produced from photovoltaic plants will be limited to 25 years and existing feed-in-tariffs for the installations under the framework of Royal Decree 1578/2008 (not for those under Royal Decree 661/2007) will be cut down by: - 5% for small-size roof installations. - 25% for medium-size (21 to 100 kW) roof installation. - 45% for ground installations. The Royal Decree further intends to support the technical integration of renewable energy and CHP (Combined Heat and Power) facilities with the implementation of a specific regulatory framework for R&D in the renewable energy sector, especially for innovative onshore wind installations. The Decree also seeks to spread the use of electronic communication tools to speed up administrative procedures. Royal Decree 1565/2010 expands the obligation of connection to the Generation Control Centre of facilities above 10 MW to individual clustered facilities of an overall installed capacity equal or greater than 10 MW. Additionally, single or clustered photovoltaic installations exceeding 2 MW of installed capacity must comply with the same technical requirements as wind power stations when coping with voltage drops occurring in the electricity grid. Current tariffs for PV electricity (for those installations pre-registered on the 2011 second-quarter call) are: - Small-size roof installations: EUR 289/MWh - Medium-size (21 to 100 kW) roof installation: EUR 204/MWh - Ground installations: EUR 135/MWh

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