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Spain approves a decree creating a new renewable auction system

5 Nov 2020

The Spanish Council of Ministers has approved a decree establishing a new regulatory framework for renewable energy auctions, the Economic Renewable Energy Regime (Régimen Económico de Energías Renovables, REER). The text creates a “pay as bid” system in which bids will be submitted sealed, and the winners will receive different prices based on their offers. The new scheme allows hybridisation between technologies, the expansion and modification of existing plants and will be compatible with electricity storage. The first auction is expected to take place by the end of 2020 and will replace the 2013 support scheme.

In May 2020, the Spanish government approved the draft Law on Climate Change and Energy Transition. The regulation targets climate neutrality by 2050 and Spain should reduce its greenhouse gas (GHG) emissions by 20% in 2030 compared to 1990 levels. Renewables are expected to account for 70% of the electricity mix in 2030 and 35% of the energy mix.

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