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Biogas in Spain

General
The whole spectrum of renewable energy policies is laid down in the Program for Promotion of Renewable Energies 2005-2010 (PPER or PFER in Spanish). Revised version of PFER 2000-2010, the strategic target of PFER is to achieve by 2010 a 12% of primary energy consumption by renewables, through a joint combination of subsidies, tax exemptions and feed-in-tariffs for electricity production.

Renewable heat and electricity: biogas
As a result of rising electricity price in recent years, the producers of renewable electricity had increased revenues within the previous feed-in system, in which both feed-in tariffs and premi-ums were coupled to the reference electricity price or average electricity tariff (AET). In order to impulse biogas production in Spain, in May 2007 adjustments were introduced in Royal De-cree 661/2007 “Regulating the electricity production under the special scheme”, [1] that im-proved both the fixed tariffs and the premiums for biogas generation, distinguishing among in-stallations with a capacity of less or equal than 500 kW and installations with a capacity of more than 500 kW. According to RD 661/2007 the premiums and fixed tariffs are no longer coupled to reference electricity price. Besides, in case of premium, a cap and floor has been introduced per each category of renewables. The floor is the lowest level of premium plus electricity price, and the cap is the maximum electricity price to where a premium is still paid.

This new system protects the promoter when the income derived from the market price is too low, and removes the premium when the income is high enough to ensure breaking even.

The premium tariffs are paid on an hourly basis. The amounts of tariffs, premiums, supplements and cap&floor limits will be annually updated having the consumer price index (CPI) as a reference minus 25% until the 31st December 2012 and minus 50% since then.  Besides, during 2010, in view of the results of the follow-up reports on the degree of fulfillment of the targets set out in the national “Renewable Energies Plan (PER) 2005-2010” as well as the new objec-tives included in the following national Renewable Energies Plan for the period 2011-2020, the review of tariffs, premiums, supplements and cap&floor limits will take place, bearing in mind the costs associated with each of these technologies, the extent of participation in the special scheme in the meeting of the demand and its effect on the technical and economical system, al-ways guaranteeing reasonable profitability rates with reference to the price of money on the capital market. After that, every four years a new revision will be done, maintaining the criteria above.

RD 661/2007 also establishes an objective for reference installed capacity for category b.7 (in which biogas is included) of 250 MW, which is coherent with the targets set in the national “Renewable Energies Plan 2005-2010”.

The 2007 tariffs, premiums and cap&floor for biogas are presented below [1].




Installed Power
<= 0,5MWe>0,5MWe
Period 1 (years)1-151-15
Period 2(years)>15>15
Fixed price period 1 (€ct/kWh)13.19.7
Fiwed price period 2 (€ct/kWh)6.56.5
Reference premium priod 1 (€ct/kWh)9.85.8
Reference premium period 2 (€ct/kWh)0.00.0
Cap (€ct/kWh)15.311.0
Floor (€ct/kWh)12.49.6

Future programme changes expected

No information on future policy.


Source:
[1]    Royal Decree 661/2007. 25th May 2007

[2]    Rodrigo Gonzalo, M.: Personal communication. IDAE, June 2008

[3]    Interactive EurObserv’ER Database, http://www.eurobserv-er.org (status 2007)

Interactive EurObserv’ER Database

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Last update: [Month] 2008