Get to know Royal Decree-Law 23/2020 on economic reactivation in two minutes

25/6/20
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The new one has been published Royal Decree-Law 23/2020, of 23 June, approving measures in the field of energy and other areas for economic reactivation which seeks to respond to the opportunity presented by COVID-19 to accelerate the energy transition and provide an attractive framework for the massive deployment of renewable energies, while respecting the principle of sustainability of the electrical system.

Main news

The first block concerns measures to regulate the large number of access requests. They are absorbing evacuation capacity from the electricity grid, limiting the deployment of new renewable generation. So for example Article 1 establishes that the holders of access permissions obtained after December 31, 2017, must prove that they have met the following maximum deadlines:

“1st Request submitted and accepted for prior administrative authorization: 6 months.

2. Obtaining a favorable environmental impact statement: 22 months.

3. Obtaining prior administrative authorization: 25 months.

4. Obtaining administrative authorization for construction: 28 months.

5. Obtaining definitive administrative authorization for operation: 5 years.”

Of special relevance for some developers are the “Criteria for considering that an electricity generation facility is the same for the purposes of the access and connection permissions granted or requested”. They are set out in Annex II, since modifications to initial projects are frequent and this novelty must be carefully taken into account. Thus, for example, “it will be considered that the geographical location of the generation facilities has not changed when the geometric center of the generation facilities planned initially and finally, without considering the evacuation infrastructures, does not differ by more than 10,000 meters.”

New auction system

This block also addresses a new design of future auctions that has been positively evaluated by the sector and which adds the following section to the Law 24/2013 on the Electricity Sector

“[...] in order to promote predictability and stability in the revenues and financing of new installations for the production of electricity from renewable energy sources that are built, the Government shall develop by regulation another remuneration framework for the generation of electrical energy from renewable energy sources, based on the long-term recognition of a fixed price for energy.”

The second block contains a series of measures to promote new business models that are also modified in order to eliminate administrative barriers. In this way, provisions are incorporated relating to storage, independent aggregators, renewable energy communities, hybridization, high-capacity charging infrastructures >250 kW, and others.

The third block regulates measures to promote energy efficiency by amending Law 18/2014 and finally, the fourth block seeks to mitigate the negative effects of the COVID-19 crisis on energy market agents through fiscal measures.

How it affects the Environmental Assessment Act

Given the importance for our activity as environmental partners in renewable generation projects, in this document we have incorporated the amendments to articles 34, 43 and 47 of the Law 21/2013 of environmental assessment that are introduced.

In short, Royal Decree-Law 23/2020 improves deadlines, reinforces the maturity and implementation requirements of renewable energy projects

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