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What it is

New rules for coal plant closures and renewable energy payments

BOE step 7 of 7 · Passed

It is a royal decree-law. It was introduced on 22 November 2019. Introduced by: Gobierno.

Official title: Royal Decree-Law 17/2019, of November 22, adopting urgent measures for the necessary adaptation of remuneration parameters affecting the electricity system and responding to the process of cessation of activity of thermal generation plants.

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Source: Congreso de los Diputados, file 130/000007· updated 11 Nov

Automatic summary, not yet reviewed

  1. Sets the reasonable return, before taxes, used to review payments for renewable, cogeneration and waste installations in the second regulatory period at 7.09%.
  2. Sets the financial return rate for electricity production in the non-peninsular systems at 5.58%, with a limit of 50 basis points of change between consecutive years.
  3. Extends until February 29, 2020 the deadline to approve the order reviewing the payment parameters for installations under the specific payment scheme. Meanwhile, they are paid on account based on what they were receiving.
  4. Allows new water concessions to be granted to projects in the area after coal or thermonuclear thermal plant closures, weighing economic, social and environmental criteria. Public water supply remains the top priority.
  5. Allows the grid access capacity freed up by plant closures to be allocated to new renewable projects, weighing their environmental and social benefits, including jobs, in addition to technical and economic factors.
  6. Installations that received primed payments before royal decree-law A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses. 9/2013 can keep the first regulatory period's return rate (7.398%) during 2020-2031 if they give up starting or continuing arbitration or court proceedings and any related compensation.

Who it affects

  • Owners of renewable, cogeneration and waste installations: They learn the return rate that will apply to their payments and can opt into the stable 12-year scheme by giving up arbitration.
  • Electricity producers in the non-peninsular territories: Their financial return rate drops to 5.58%.
  • Electricity consumers and taxpayers: They avoid paying a return higher than the one proposed by the CNMC in the non-peninsular systems.
  • Areas affected by coal or thermonuclear plant closures: They can host new renewable projects with preferential grid access and water concessions.
  • Companies with arbitration or court claims against the State: To get the stable scheme, they must give up those proceedings and any compensation already awarded.

Words worth knowing

Rentabilidad razonable (reasonable return)
The percentage of profit the State recognizes for certain electric installations on the value of their investments.
Régimen retributivo específico (specific payment scheme)
A payment system that compensates renewable, cogeneration and waste installations so they cover costs and earn a reasonable profit.
Retribución primada (primed payment)
An additional payment some installations received before the 2013 electricity reform.
Procedimiento arbitral (arbitration proceeding)
A way to resolve disputes outside the courts, through an arbitrator's decision; here, under international investment treaties.
Permiso de acceso y conexión (grid access and connection permit)
Authorization to connect a generation installation to the power grid and feed in the energy it produces.
royal decree-law
A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.
decree-law
A rule with the force of law that the Government passes because it is urgent. It applies from its publication, but the Congreso must validate it within 30 days or it lapses.

It summarizes the law as published in the BOE. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries

Where it stands

How far did it get?

It took 7 of 7 steps. It reached BOE, and today it is passed.

  1. Introduced22 November 2019Someone registers the text in the Congreso.
  2. Admitted25 November 2019The Bureau of the Congreso accepts it and, for a members’ bill, the plenary decides whether to consider it.
  3. Amendmentsno dateGroups propose changes.
  4. Committeeno dateA committee goes through the text in detail.
  5. Plenaryno dateAll 350 deputies vote.
  6. Senateno dateThe Senate can pass it, amend it or veto it.
  7. BOEno dateIt is published in the Official State Gazette (BOE) and comes into force.
See the 4 official steps on a timeline
Nov 201911. 22 November 2019: Presentación22. 25 November 2019: Diputación Permanente desde 25/11/2019 hasta 27/11/201933. 25 November 2019: Calificación44. 27 November 2019: Concluido - (Convalidado) desde 27/11/2019 hasta 02/12/2019

Was there a plenary vote?

We have no plenary vote linked to this law in the Congreso’s data.

What happens next

What happens now?

It is law, or will be once published in the BOE. It comes into force on the date its own text sets.

Published in the BOE: Royal Decree-Law 17/2019, of November 22, adopting urgent measures for the necessary adaptation of remuneration parameters affecting the electricity system and responding to the process of cessation of activity of thermal generation plants.

Sources

Where does all this come from?

  • The data comes from the open files of the Congreso, the Senate and the BOE, unaltered.
  • Each deputy’s province is the one of their seat on the day of the vote.
  • We only say “passed” or “rejected” when the majority needed is certain; otherwise we say which side had more votes.

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