Energy Spain Newsflash 772022 120029 PM
07 July 2022
DRAFT ORDER ON A CALL OF ACCESS CAPACITY TENDERS AT CERTAIN NODES OF THE TRANSMISSION GRID
Royal Decree 1183/2020, of 29 December, on access and connection to the electricity transmission and distribution grids (RD 1183/2020) sets out the possibility of convening, when certain requirements are met and by means of a ministerial order, access capacity tenders at specific nodes of the transmission grid for new electricity generation facilities that use renewable primary energy sources as well as for storage facilities.
In this context, on 10 June, the Ministry for Ecological Transition and the Demographic Challenge (MITERD) published a draft order announcing a call for an access capacity tender at 17 nodes in the transmission grid. The draft was submitted to a public information procedure for the filing of allegations until 28 June.
The content of the draft order can be accessed here.
PRIOR PUBLIC CONSULTATION ON THE REGULATORY FRAMEWORK FOR THE DEVELOPMENT OF OFFSHORE WIND AND MARINE ENERGY FACILITIES
On 1 June 2022, the MITERD carried out a prior public consultation (consulta pública previa) on the future regulatory framework for the development of offshore wind and marine energy facilities.
The offshore wind energy sector has been boosted over the last decade by major advances for its commercial implementation, which has contributed to an increase in its potential geographical scope and interest in the development of projects along the Spanish coast.
Likewise, in December 2021, the MITERD published the "Roadmap for the development of offshore wind and marine energy in Spain". Among other issues, this Roadmap points out the need to adapt the current regulatory authorisation framework to promote investment in this sector. The Roadmap also sets out that, during the year 2022, the Marine Zoning Instruments (known as POEM according to their acronym in Spain) will begin to be approved as zoning instruments in order to reflect the most suitable areas for the development of these technologies on the Spanish coasts.
In light of the above, the implementation of a new regulatory framework is necessary, particularly if we also bear in mind that the third additional provision of Royal Decree-law 12/2021, of 24 June, suspends the authorisation procedure for these installations until the Government approves such new regulatory framework.
The content of the prior public consultation can be accessed here.
MODIFICATION OF THE TECHNICAL BUILDING CODE (CÓDIGO TÉCNICO DE LA EDIFICACIÓN)
On 15 June 2022, Royal Decree 450/2022, amending Royal Decree 314/2006 of 17 March approving the Technical Building Code (Código Técnico de la Edificación) (CTE), was published in the Official State Gazette (BOE). Among other provisions, the following modifications are noteworthy:
The content of Royal Decree 450/2022 can be accessed here.
EFFECTIVE ENFORCEABILITY OF THE MECHANISM FOR THE ADJUSTMENT OF PRODUCTION COSTS FOR THE REDUCTION OF ELECTRICITY PRICE IN THE WHOLESALE MARKET
On 9 June 2022, Order TED/517/2022 of 8 June was published in order to set out the effective enforceability of the production cost adjustment mechanism for the reduction of electricity price in the wholesale market as regulated in Royal Decree-law 10/2022, of 13 May, following the decision issued by the European Commission authorising said mechanism.
The purpose of this regulatory instrument, which became enforceable on 14 June, is to reduce the marginal price of electricity in the wholesale markets of the Iberian Peninsula and, ultimately, to promote a reduction in the retail prices borne by final consumers. This mechanism will be applicable for 12 months and in no case may it be extended beyond 31 May 2023.
The content of the Order can be accessed here.
CLARIFICATIONS ON CONNECTION RIGHTS FOR RENEWABLE GENERATION FACILITIES WITH A CAPACITY BELOW 5 MW.
On 9 June 2022, the National Commission on Markets and Competition (CNMC) issued a resolution deciding on an access to electricity transmission and distribution grids' conflict (CFT/DE/146/21). By means of this resolution, the CNMC sets out its criteria relating to the priority of access and connection procedures for those generation facilities with a capacity below 5 MW that are intended to be connected to the distribution grid when the affected transmission grid node is reserved for an access capacity tender.
In this regard, RD 1183/2020 provides for the suspension of the connection requests to the distribution grid for generation facilities whose capacity exceeds 5 MW when the affected transmission node is reserved for an access capacity tender, but does not set out any specific provision for generation facilities with a lower capacity. In the aforementioned resolution, the CNMC concludes that, although the regulation does not specify this as it is unnecessary, requests relating to generation facilities whose capacity is below 5 MW -provided that they are not intended for self-consumption- cannot be resolved until the resolution of the suspended procedures with time priority and, therefore, they shall also be suspended.
The content of the resolution can be accessed here.
MEASURES IN THE ENERGY FIELD INTRODUCED BY ROYAL DECREE-LAW 11/2022 OF 25 JUNE 2022
The content of the Royal Decree-law 11/2022 can be accessed here.
MEASURES IN THE HYDROCARBONS SECTOR INTRODUCED BY ROYAL DECREE-LAW 11/2022 OF 25 JUNE 2022
The content of the Royal Decree-law 11/2022 can be accessed here.
TAXATION MEASURES INTRODUCED BY ROYAL DECREE-LAW 11/2022, OF 25 JUNE 2022
The content of the Royal Decree-law 11/2022 can be accessed here.
LATEST TAXATION PRONOUNCEMENTS ON THE POSSIBLE REVERSAL OF THE TAXABLE PERSON FOR VAT PURPOSES IN PHOTOVOLTAIC INSTALLATIONS
The Spanish General Directorate of Taxes has recently clarified in response to several binding rulings that the reverse charge mechanism (whereby the provider of a service does not have to charge VAT to the recipient of the service, so that there is no actual payment of the tax and, therefore, no need to finance it), applies to the execution of design and assembly projects for solar generation installations, given that the elements that make up a solar farm (photovoltaic plants, connection or evacuation lines for the energy produced, energy delivery and transformation centres, generation connection lines and the buildings where they are located) are considered to be buildings, provided that such work:
The information provided is not intended to be a comprehensive review of all developments in the law and practice, or to cover all aspects of those referred to.
Readers should take legal advice before applying it to specific issues or transactions.