Strategic plan for the impact on local employment and the industrial value chain

On January 26, the 3,000 MW renewable energy auction was held (this quota has reserved a minimum of 1 GW for photovoltaic and 1 GW for wind power) in which renewable installations may participate according to the art. 2.1 of RD 960/2020 new or extensions of existing ones. The winners of the auction will have two months to submit the application for pre-assignment registration, which must include a “Strategic Plan for the Impact on Local Employment and the Industrial Value Chain”.

This is one of the new features compared to the previous auction in 2017 and its mandatory nature is established by the”Order TED/1161/2020, of December 4, which regulates the first auction mechanism for the granting of the economic regime for renewable energy and establishes the indicative calendar for the period 2020-2025.” and the”Resolution of December 10, 2020, of the Secretary of State for Energy, calling for the first auction for the granting of the economic regime for renewable energy ”

Minimum contents

Since at this time, renewable generation facilities must only describe technology and power and, therefore, do not have to be identified, this Strategic Plan for the impact on local employment and the industrial value chain will establish the guidelines and objectives that will later be necessary to specify. The basic information contained in the Plan that must be submitted to the General Directorate of Energy Policy and Mines will be as follows:

1. Overview of the investments to be made.
2. Purchasing and contracting strategy that details the commitments made by the project with the territory.
3. Estimation of direct and indirect employment created during the construction and start-up process of the facilities and during their operation, distinguishing between the local, regional or national level.
4. Estimation of the impact on the local, regional and national industrial value chain.
5. Circular economy strategy in relation to the treatment of equipment at the end of its useful life.
6. Analysis of the carbon footprint during the life cycle of the facilities, including the manufacture and transport of the main equipment that comprises them.
7. Indicators on the occupied surface.

“The application for registration will include [...] the commitments made by the project with the territory and the estimation of its impact on local employment and on the local, regional and national industrial value chain; in the field of the circular economy, the measures contemplated in relation to the treatment of equipment at the end of its useful life, as well as information on the carbon footprint of the installation and indicators on the occupied area.” (art. 13 Order TED/1161/2020)

Concretion of the Plan

The said plan must be updated and specified in specific plans for each of the facilities once they have been identified within a maximum period of 3 months. These plans will be made public on the website of the Ministry for the Ecological Transition and the Demographic Challenge (MITECO), since one of the main objectives of the Plan is transparency and seeks to transfer the benefits of the facility.

Finally, it establishes the obligation to submit, together with the application for registration in the electronic register of the economic regime of renewable energy in a state of operation (the 6th and last milestone of the procedure), the definitive Plan. Taking into account that the installation will already be in operation, the final version of the Plan must reflect the level of compliance with the forecasts made in the plan submitted after the identification of the installation.

Are you looking for a environmental partner?

If you are wondering how to specify your Strategic Plan for the impact on local employment and the industrial value chain and meet this essential requirement to take advantage of this lucrative economic regime, look no further. In Environmental Ideas we have extensive experience in analyzing the socio-economic impacts and effects on climate change of photovoltaic plants and wind farms, including carbon footprint calculations based on a life cycle analysis, as well as the variation in the sink capacity of land due to land use changes.