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Biogas policy 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 (with, a.o., a 30.3% contribution of renewables to electricity consumption), through a joint combination of subsidies, tax exemptions and feed-in-tariffs for electricity production. The total investment for the realisation of the renewable energy plan (PPER) for the period 2005-2010 is estimated to 23,600 M€, from which 36% (8,490 M€) would be contributed by public support (feed-in tariff electricity: 4,960 M€, biofuels: 2,850 M€, subsidy direct to the projects: 680 M€).

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Spain is 20% (in the year 2005 the share was 8.7%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

Renewable energy projections according to the National Renewable Energy Action Plan for Spain
The National Renewable Energy Action Plan (NREAP) for Spain was submitted in July 2010. The target according to Annex I of Directive 2009/28/EC is 20% for the year 2020 and the projected NREAP share in that year is 22.7%.  According to the projection, the most important contribution in the year 2020 is expected from wind power (78.3 TWh or 6729 ktoe, 31% of all renewable energy). Second important contribution is expected from biomass (renewable heating and cooling) (4950 ktoe, 22% of all renewable energy). The third largest contribution is from hydropower (39.6 TWh or 3404 ktoe, 15% of all renewable energy). Wind power contributes with 38.0 GW (78.3 TWh) in the year 2020 (onshore wind 35.0 GW and 70.5 TWh, offshore wind 3.0 GW and 7.8 TWh). For solar photovoltaic the 2020 contribution is projected to be 8.4 GW (14.3 TWh). For solar thermal the 2020 contribution is projected to be 644 ktoe. The two most important biofuels are projected to contribute 3100 ktoe (biodiesel) and 400 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 7.4 TWh (636 ktoe) and for biogas it is expected to be 2.6 TWh (225 ktoe). The consumption of renewable heat is expected to amount to 4850 ktoe for solid biomass and 100 ktoe for biogas.

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)

1-15

1-15

Period 2(years)

>15

>15

Fixed price period 1 (€ct/kWh)

13.1

9.7

Fiwed price period 2 (€ct/kWh)

6.5

6.5

Reference premium priod 1 (€ct/kWh)

9.8

5.8

Reference premium period 2 (€ct/kWh)

0.0

0.0

Cap (€ct/kWh)

15.3

11.0

Floor (€ct/kWh)

12.4

9.6


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)

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)

 

Interactive EurObserv’ER Database
http://www.eurobserv-er.org
Last update: December 2010



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