Royal Decree 413/2014, regulating the production of electricity generation from renewable energy, cogeneration and waste

This Decree establishes the new legal and financial regime for existing renewable energy, cogeneration and waste installations, with the aim of allowing these installations to compete on equal footing with other technologies.

This Decree allows installations to receive, in addition to remuneration from the sale of the energy valued at market price, specific payment consisting of:
(i) A payment per unit of installed capacity, which covers the investment costs for each standard installation that cannot be recovered through the sale of the energy
(ii) A return on operation, which covers the difference between the operating costs and the market price. This payment must allow projects to cover the costs that, unlike conventional technologies, they cannot recover in the market and allows them to obtain a reasonable profit.

RD 413/2014 establishes regulatory periods of six years, with the first regulatory period falling between 14 July 2013 and 31 December 2019. Each regulatory period is divided into two regulatory half-periods of three years. Remuneration parameters can be reviewed at the end of each regulatory half-period or regulatory period, and all remuneration parameters can be modified, including the reasonable profitability for the rest of the regulatory useful life.

RD 413/2014 establishes that new renewable installations may access this remuneration regime bidding in competitive procedures. In off-peninsula systems (the Canary Islands, Balearic Islands, Ceuta and Melilla) investment incentives may be introduced, in accordance with the efficiency of the installations planned for said territories.

Order ETU/1046/2017 was published as part of BOE no.264 of October 31st, 2017, to notably redefine the scope of previous and new installations and the parameters of redistribution of RD 413/2014.

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