Spain's Official Journal (BOE) today published the Secretariat of State for Energy's Resolution of 10 April 2017, which calls a tender to allocate specific remuneration to new renewable energy generation facilities pursuant to Order ETU/315/2017, of 6 April; and the Secretariat of State for Energy's Resolution of 10 April 2017, which establishes the procedure and rules of the tender to allocate specific remuneration to new renewable energy generation facilities, called pursuant to Royal Decree 359/2017, of 31 March, and Order ETU/315/2017, of 6 April.

Those Resolutions call the tender and establish the procedure and rules that will govern it, i.e., they establish the capacity that will be auctioned, the tendering timeline, the minimum and maximum discounted rates offered and minimum system cost increase incurred, the tender administrative costs, the rights and obligations of the qualified bidders, the guarantees that must be posted, etc. The tender will auction economic rights for a maximum 2,000MW of installed capacity, although the confidential clause establishes a procedure by which that allocated capacity may be increased in certain circumstances.

Tendering timeline

According to the first of the above Resolutions, the tender will have the following timeline:

  • Deadline for submitting documentation for prequalification: 13:00 hours of 11 May 2017.
  • Deadline for submitting documentation for qualification: 13:00 hours of 11 May 2017.
  • Trial auction with the qualified bidders: 09:00 hours of 12 May 2017.
  • Testing of access to the auction system and electronic signature: 09:00 hours of 16 May 2017.
  • Time and date of the auction: 09:00 hours of 17 May 2017.
  • Tender submission process opens: 09:00 hours of 17 May 2017.
  • Closing of tender submissions: 11:00 hours of 17 May 2017.
  • Bid verification process and publication of provisional results: Up to two hours after the submission deadline closes.
  • Claims against the provisional results: Up to two hours after publication of the provisional results.

Allocation procedure

Some days ago, Spain's Official Journal published Order ETU/315/2017, of 6 April, which regulates the procedure for allocating the specific remuneration in the tender for new renewable energy generation facilities, called pursuant to Royal Decree 359/2017, of 31 March, and approves its remunerative parameters.

The Order was issued on the back of Royal Decree 359/2017, of 31 March, which establishes a tender to allocate what is known as 'specific remuneration' to new renewable energy generation facilities connected to Spain's peninsular power system; it also establishes the mechanism for allocating the specific remuneration and setting out the remunerative parameters for each standard plant, which will be calculated on the basis of the remunerative parameters applicable to each reference standard plant (i.e., wind energy plants, photovoltaic plants or facilities using technologies other than wind and photovoltaic) and the discounted rates offered in the new auction.

Facilities will be eligible to take part in the tender, which will be a competitive process, if their primary energy sources are any of the non-fossil renewable energy sources listed in category b) of article 2 of Royal Decree 413/2014, of 6 June, which regulates the production of energy from renewable sources, co-generation and waste (i.e., photovoltaic, wind, geothermal, hydrothermal, aerothermal, hydroelectric or biomass, among others). To be eligible, facilities must also be new and located in peninsular Spain.

In general, successful bidders must:

  1. submit an application to the Directorate General for Energy Policy and Mining to have the facility registered as pre-allocated in the Specific Remuneration Register;
  2. provide information to the Ministry of Energy, Tourism and Digital Agenda identifying the facility or facilities that it will be building up to the power registered in the Specific Remuneration Register;
  3. provide evidence to the Ministry of Energy, Tourism and Digital Agenda that it has obtained the required building permit, or other equivalent document; and
  4. apply to have the facility registered as operational in the Specific Remuneration Register.

The guarantee posted by the respective developers will be returned gradually as and when the milestones of the different construction projects are completed; the facilities must be in operation by 2020.