National Law to promote electric self-consumption.
About this good practice
After an uncontrolled boost of the renewable energy sector, including a high potential for self-consumption that could have led to an economic crisis of the sector, the national decree RD 900/2015 was approved. The aim was to guarantee the financial stability of the electrical system, but it included that consumers should pay additional taxes for the energy self-produced and consumed. The effect that it generated was just the opposite, a blockage in the use of self-consumption from renewable sources in Spain.
After a few years and through another national decree, RD-Law 15/2018 of urgent measures for the energy transition and consumers protection, and later RD 244/2019 that regulates electric self-consumption conditions, regulations were modified at the national level in order to promote energy self-consumption in all sectors, making administrative procedures easier and regulations more favourable for prosumers.
The aim of this regulatory change was to eliminate the existing barriers that have prevented the self-consumption activity from the beginning of its development in Spain. Their fundamental principles are:
i) Right to self-consume electricity without charge.
ii) Right to share self-consumption.
iii) Administrative and technical simplification.
This new regulation encourages renewable electric self-consumption as an essential element to ensure that the consumers can obtain cleaner and cheaper energy, democratizing the energy system.
Expert opinion
This good practice is intended to national energy policy makers and regulators as well as regional ones in countries that have the competence for setting the regulatory frameworks for renewable energy self-consumption at regional level.
Especially countries in coal-transition should study this practice and enable and encourage self-consumption through smart legislation.
Especially for the self-generation of roof-top solar PV, a suitable framework for self-consumption can have impressive leveraging effects. With today's reduced prices for the installation of home PV systems and the upward trend in electricity prices it is a cheap measure to adapt the regulatory framework as it allows to mobilise private investment into a decentralised energy system at the scale of every house. The surge of new installations after approval of the Spanish law proves the imporant and high impact of this measures.
Resources needed
The change is legislation had no economic resources associated.
Evidence of success
Thanks to the regulation change, 459 MW of new photovoltaic power for self-consumption were installed in Spain in 2019, twice more than the installed capacity in 2018. A lot more is expected to be approved for 2020.
In Extremadura, there are 216 installations for self-consumption and another 104 are in the pipeline for approval.
Potential for learning or transfer
Even if self-consumption is a common practice throughout Europe, there are still countries that have unfavourable regulations, so there is still a potential for replication.
Further information
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Good practice owner
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