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Review of the legislative framework for the remuneration of photovoltaic production in Spain: a case study
- Source :
- Repositorio Institucional de la Universidad de Burgos (RIUBU), instname, Sustainability, Volume 12, Issue 3, Sustainability, Vol 12, Iss 3, p 1214 (2020)
- Publication Year :
- 2020
- Publisher :
- MDPI, 2020.
-
Abstract
- Spain is among the European countries with the greatest photovoltaic potential. During the first decade of the 2000s, Spain was a European leader in installed photovoltaic power and job creation in the renewable energy sector, strongly influenced by a very favorable regulatory framework and public subsidies at a time of economic growth. That situation would be completely reversed with the regulatory changes introduced in 2012 to combat the tari deficit and the instability in the electricity supply system, problems accentuated by the economic crisis. The main objective of this study is to present an exhaustive review of the legislative changes that have a ected photovoltaic energy in Spain. Using real data on electricity production and the remuneration of a typical photovoltaic plant, we show that there was a very significant fall in the economic returns that investors had come to expect, within a system that prioritized, first and foremost, the initial investment rather than the levels of electricity production. The changes to the legislative framework a ecting a typical 100 kWp photovoltaic (PV) facility that entered into service before 2007 provoked a significant decrease of 8.7% in expected revenues, calculated from real data of production and income. These economic losses can be even higher, with a drop in revenue of almost 25% if the entire period of the installation’s useful life is analyzed. Public support for renewable energy is important for its introduction into the electricity market, but so is regulatory stability that o ers investment security and predictability for maintaining investment and development in the renewable energy sector<br />Regional Government of Castilla y León under the “Support Program for Recognized Research Groups of Public Universities of Castilla y León” (ORDEN EDU/667/2019) and the Spanish Ministry of Science, Innovation, and Universities under the I + D + i state program “Challenges Research Projects” (Ref. RTI2018-098900-B-I00)
- Subjects :
- Electric engineering
Mains electricity
Natural resource economics
020209 energy
Geography, Planning and Development
TJ807-830
Tariff
02 engineering and technology
010501 environmental sciences
Management, Monitoring, Policy and Law
TD194-195
01 natural sciences
Renewable energy sources
photovoltaic production
0202 electrical engineering, electronic engineering, information engineering
Remuneration
Electricity market
Revenue
GE1-350
Energy economics
0105 earth and related environmental sciences
Ingeniería eléctrica
Environmental effects of industries and plants
Renewable Energy, Sustainability and the Environment
business.industry
Investment (macroeconomics)
renewable energy
Renewable energy
Environmental sciences
Energy (Economics)
energy sector
Business
legislative framework
Energía-Aspectos económicos
Subjects
Details
- Database :
- OpenAIRE
- Journal :
- Repositorio Institucional de la Universidad de Burgos (RIUBU), instname, Sustainability, Volume 12, Issue 3, Sustainability, Vol 12, Iss 3, p 1214 (2020)
- Accession number :
- edsair.doi.dedup.....6fb827cef29367394b4751dcee2e4aab