Royal Decree regarding Renewable Energy

The Royal Decree regarding renewable energy that was approved on April 5 this year allows the regulation of administrative, technical and economic terms and conditions in relation to self-consumption in Spain. In effect, this means that the regulatory framework on this issue has been completed and the result of this is that self-consumption energy is now a feasible proposition in in this country.

What this Royal Decree brings

What this Royal Decree does is enable the installation of collective self-consumption energy supply systems in communities of property owners as well as in industrial estates. In addition to this, it also reduces the amount of administrative procedures involved, especially in relation to small self-consumers, establishing a simplified mechanism of compensation between the energy that is self-produced and that which is not consumed.

It also allows for the consideration of different possibilities that up until now were not contemplated. The impulse of self-consumption today will have a very positive effect on the general economy of the electrical and energy system, as well as on consumers. Being able to extend this formula will help boost economic activity and also local employment thanks to its distributed nature.

It will also favour the electrification of the economy, allowing our country to comply with its obligations in the fight against the effects of climate change and global warming. This Royal Decree allows several consumers to use the same energy generating plant. This will further boost self-consumption in communities of owners, between companies and industries situated in the same location. On the other hand, the concept of production installation close to those of consumption and associated to them is also defined.

Thanks to this, self-consumption is allowed both with energy generating facilities located on the same property, in the same way as in others that are located within the vicinity. In this way, photovoltaic panels can be installed in adjacent buildings that have better orientation, as long as there is an agreement between both parties.