2014 saw the culmination of the negative effects of the so-called Energy Reform starting with Royal Decree Law 1/2012 that imposed a moratorium on the entire Special Regime by almost prohibiting the development of new installations that had not already been authorised and by including them in Remuneration Pre-allocation Register pursuant to Royal Decree 661/2007.
However this moratorium was not enough as both existing facilities and those in operation were taxed under Act 15/2012 (December) on the electricity sold in the market (at 7% of its price) and on the fuel necessary to produce it (the Special Hydrocarbon Duty, also known as the “green cent”). Its effect has been to reduce the remuneration on electricity of the so-called Special Regime and increase the cost of production for cogeneration.
José Mª Roqueta
Honorary President of COGEN España
Article published in: FuturENERGY January-February 2015