The Spanish Government has passed a temporary suspension
of financial incentives for new renewable energy
projects.
The Spanish Government has passed Royal Decree-Law 1/2012
(hereinafter RDL 1/2012), dated January 27, which was published on
January 28 2012 in the Spanish Official State Gazette (BOE),
temporarily suspending pre- allocation registration as well as
abolishing financial incentives for new energy production projects
that use cogeneration, renewable energy sources and waste, as a
consequence of the complex economic and financial situation Spain
is undergoing at this moment.
The intention is to temporarily halt a reward system that
involves a substantial cost for the electricity system, causing the
tariff deficit, ie, differences between income from access tolls
and regulated activity costs, to increase continuously. This
measure does not jeopardise supply nor the renewable energy sources
targets set forth by the European Union.
