Royal  Decree-Law 2/2013 is an emergency decree that hit the statute on 1 February as  part of government measures to cut the ballooning tariff deficit - a debt that  accrued because regulated spending was greater than regulated income (see EDEM 4  February 2013).  
  Prior to the  new law, operators of renewables projects in Spain could choose from two  payment methods.  
  They could be  paid either on a daily spot market pool price plus subsidy basis, or receive a  fixed rate through the regulated tariff system. 
  The new law  abolished the first payment system, meaning renewables operators could only  take a regulated tariff or accept the daily spot pool price open to all  generation types without subsidy. 
  However  generators chose not to opt for this, because it removed renewables  technologies from the special regime, which included standard renewables,  small-scale hydroelectric and cogeneration plants, while also sweeping away the  right to priority dispatch, whereby renewables advanced to the top of the merit  order. 
  Around 90% of  wind generators had been on the market price plus premium subsidy before it was  cancelled, the AEE spokeswoman said.  
  "The  ironic thing is, if the government had not insisted on the abolition of the  market price plus premium, it would have saved money because pool prices have  been so low recently," the spokeswoman added. 
  Spanish pool  prices frequently fell into single figures during April because of the high  availability of wind and hydroelectric power, data from spot market operator  OMIE shows. 
  The AEE  spokeswoman said the appeal process was likely to be a long one and could not  give any indication of when it would likely be admitted.  
  Retroactive  subsidy cuts have previously been alluded to by German environment minister  Peter Altmaier, only for the legality of such a move to be questioned (see EDEM 4 February 2013).  
  A similar  move in Italy in 2011 was also attacked (see EDEM 19 April 2011).  
(THE ICIS HEREN REPORTS - EDEM 17092/ 14 May 2013) |