Cutting windfall CO2 gains for clean power plants

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1. The bill would reduce the market revenues of certain non-emitting power plants, specifically the extra income they get because CO2 costs push up the wholesale electricity price.
2. It would only apply to non-emitting plants in mainland Spain that started operating before October 25, 2003. Plants with a special compensation scheme and plants of 10 MW or less are excluded.
3. The reduction would apply to all the energy produced by those plants, even if it is sold through bilateral contracts instead of the day-ahead market.
4. The amount would be calculated monthly using a formula based on energy produced, a market emission factor and the CO2 price. It only applies when the CO2 price exceeds €20.67 per tonne, and plants keep 90% of that excess.
5. The settlement body would calculate and notify the amounts each quarter, and companies would have two months to pay. Quarterly payments count as advance payments toward an annual final settlement.
6. The money raised would fund capacity payments and system charges, and 10% would help pay the electricity bills of severely vulnerable consumers.

Who it affects

• Owners of non-emitting mainland plants operating before October 25, 2003: Their market revenues from unemitted CO2 would be reduced.
• Electricity consumers: Could pay lower system charges, since the proceeds fund system costs.
• Severely vulnerable consumers: 10% of the proceeds would help cover their electricity supply.
• Plants with a special compensation scheme or under 10 MW: Are excluded from the reduction.

Words worth knowing

CO2 no emitido (unemitted CO2)

Extra income clean plants receive because the market price rises due to the CO2 costs of polluting plants.

Mercado mayorista (wholesale market)

The market where power plants sell the electricity that later reaches consumers.

Derechos de emisión (emission allowances)

Permits that CO2-emitting plants must buy; their price raises electricity prices.

Inframarginal (inframarginal)

A plant whose costs are so low that it profits from the price set by the most expensive plant in the market.

Cargos del sistema (system charges)

Electricity system costs (renewables, capacity, etc.) shared among consumers.

It summarizes the drafting committee report. It is written by artificial intelligence and may contain mistakes: the official text is what counts. Read the official text · How we make summaries