Feed-in Tariffs

A series of Royal Decrees provided support for electricity generation from renewable energy sources, waste and CHP, based on feed-in tariffs. The 1994 decree determined the fixed tariff for solar electricity at ESP 10.42/kWh (€ 0.06/kWh). The Royal Decree (2818/1998) increased the tariff for solar electricity to € 0.22 to € 0.39/kWh. In 2000, it was revised and a new price at which a utility or supplier has to purchase renewable electricity from private generators was fixed. It ranges from € 0.03/kWh (for secondary biomass) to € 0.39/kWh (for PV under 5 kW). From 1999, wind electricity producers could receive either a fixed tariff of € 0.06/kWh or the average hourly market price of electricity plus a bonus of € 0.03/kWh. Rates are specified for both capacity and output credits. Output credits are the highest for wind and solar plants: € 0.07/kWh over a five-year period. Capacity credits are the highest for waste incineration plants; output credits for these plants vary depending on the size of the plant and on the relative importance of any co-fired fossil fuel. They also decrease annually. Buy-back rates for these plants are about € 0.06/kWh in the first year. Buy-back rates also depend on continuity of supply to avoid surges in power sold to the grid. The legislation also provides for guaranteed access to the electricity grid, with agreed rates for connection.

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