PKF Attest

Energy

Royal Decree on the general framework of the regulatory test bed for the promotion of research and innovation in the electricity sector.

- -

Royal Decree 568/2022, of July 11, establishing the general framework of the regulatory test bed for the promotion of research and innovation in the electricity sector.

The purpose of this Royal Decree is to develop by regulation the general framework of the regulatory test bench conceived as a controlled environment to carry out tests that allow the development of pilot projects in order to facilitate research, innovation and regulatory improvement in the field of the electricity sector, pursuant to the provisions of the twenty-third additional provision of Law 24/2013 of December 26, 2013, on the Electricity Sector.

The Royal Decree is structured in four chapters.

  • Chapter I contains the general provisions (Articles 1 to 3).

Establishing its purpose and scope of application, as well as the definitions of the main concepts for the purposes of the provisions of the standard.

  • Chapter II specifies the regime for access and participation of projects in the test bed (Articles 4 to 12).

To this end, the applicable legal regime is regulated; the figure of the promoter; the eligibility criteria; the access mode; the way in which the applications will be evaluated; the testing protocol, which will be signed by the promoter with the Secretary of State for Energy, and will contain the particularities and specific conditions for the corresponding pilot project; the assignment agreement, which must be signed by the promoter and the participants, and the start of the tests.

In order to provide access to the regulatory test bed, specific calls will be held in which projects meeting the eligibility conditions may submit an application. Applications, in any case, will be submitted electronically since, given the type of procedure, the natural persons who could act as promoters would be professionals for whom it would undoubtedly be accredited that they have access to and availability of the electronic means necessary to relate with the Administration, so it is considered that this is a case in which the provisions of Article 14.3 of Law 39/2015, of October 1, of the Common Administrative Procedure of Public Administrations can be applied.

Subsequently, during the pre-assessment phase, the suitability of the projects for access to the regulatory test bed will be determined. Once the previous evaluation has been carried out, the projects admitted will be obliged to sign a test protocol with the Secretary of State for Energy. After the subscription of this protocol, once the activation of the system of guarantees and indemnities foreseen is accredited, the assignment agreements are signed, if applicable, and the rest of the requirements established in this Royal Decree and the corresponding call are complied with, the tests may begin.

  • Chapter III establishes the operating regime of the test bench (Articles 13 to 19).

It includes how the monitoring of the tests and pilot projects will be carried out, the early termination of the participation of pilot projects in the bank, the cases of definitive termination of the tests of the pilot projects, the right of withdrawal of the participants and the way in which the results will be evaluated, as well as the provisions related to the liability regime and the guarantee system.

  • Chapter IV contains a series of provisions (Articles 20 to 24).

Related to the possible collaboration of other agents, confidentiality, the regulation of the Coordination Commission, regulatory learning and the preparation of an annual report on regulatory innovation in the electricity sector.

Finally, two additional provisions and three final provisions. Regarding its entry into force, it will be the day after its publication in the BOE.

The European Commission has presented the REPowerEU Plan.

- -

May 19, 2022

The European Commission has presented the REPowerEU Plan, its response to the difficulties and disruption in the world energy market caused by the Russian invasion of Ukraine.

There is a twofold urgency to transform Europe's energy system:

  • End the EU's dependence on Russian fossil fuels.
  • Addressing the climate crisis.

The Recovery and Resilience Facility (RRF) is at the core of the REPowerEU Plan and supports coordinated planning and financing of national and cross-border infrastructure, energy projects and reforms. The Commission proposes to make specific amendments to the RRF Regulation to integrate specific REPowerEU chapters into Member States' existing Recovery and Resilience Plans (RRPs), in addition to the large number of relevant reforms and investments already in the RRPs. Country-specific recommendations from the 2022 European Semester cycle will feed into this process.

The proposed measures include the following actions:Energy saving measures

Saving energy is the fastest and most cost-effective way to address the current energy crisis and reduce bills.

  • The Commission proposes to improve long-term energy efficiency measures, including an increase from 9 % to 13 % of the binding energy efficiency target under the "Fit for 55" package of the European Green Pact legislation.
  • The Commission has also published an ' EU Energy Saving Communication ' that details short-term behavioral changes that could reduce gas and oil demand by 5% and encourages Member States to initiate targeted communication campaigns aimed at households and industry.
  • Member States are also encouraged to use fiscal measures to promote energy savings, such as reduced VAT rates on energy-efficient heating systems, building insulation and household appliances and products.
  • The Commission also establishes contingency measures in the event of a major supply disruption, and will issue guidance on prioritization criteria for customers and provide a coordinated EU demand reduction plan.

Measures to diversify supplies

The newly created EU Energy Platform, supported by regional working groups, will enable voluntary common purchases of gas, LNG and hydrogen by pooling demand, optimizing the use of infrastructure and coordinating outreach to suppliers. As a next step the Commission will consider the development of a 'joint purchasing mechanism', which will negotiate and contract gas purchases on behalf of participating Member States. The Commission will also consider legislative measures to require diversification of gas supply over time by Member States. The Platform will also allow for the joint purchase of renewable hydrogen.

This EU external energy strategy will involve energy diversification and the creation of long-term partnerships with suppliers, including cooperation on hydrogen or other green technologies. In line with the Global Gateway, the Strategy prioritizes the EU's commitment to a green and just global energy transition, increasing energy savings and efficiency to reduce price pressures, boosting the development of renewables and hydrogen, and strengthening energy diplomacy.

Measures focused on accelerating the deployment of renewable energies

The Commission proposes to increase the 2030 headline target for renewables from 40% to 45% under the Fit for 55 package. Setting this higher overall ambition will set the stage for other initiatives, including:

  • A dedicated EU solar strategy to double solar PV capacity by 2025 and install 600 GW by 2030.
  • A solar rooftop initiative with a gradual legal obligation to install solar panels on new public and commercial buildings and new residential buildings.
  • Doubling the rate of heat pump deployment and measures to integrate geothermal and solar thermal energy into retrofitted community and district heating systems.
  • A Commission recommendation to address the slow and complex processing of large renewable energy projects, and a specific amendment to the Renewable Energy Directive to recognize renewables as an overriding public interest.
  • Member States should establish specific access areas for renewables with abbreviated and simplified authorization processes in areas with lower environmental risks. To help quickly identify such areas, the Commission is making available datasets on environmentally sensitive areas as part of its digital mapping tool for geographic data related to energy, industry and infrastructure.
  • Set a target of 10 million tons of domestic renewable hydrogen production and 10 million tons of imports by 2030 to replace natural gas, coal and oil in hard-to-decarbonize industries and transportation sectors.
  • To accelerate the hydrogen market, co-legislators should agree on further sub-targets for specific sectors.
  • The Commission is also issuing two Delegated Acts on the definition and production of renewable hydrogen to ensure that production leads to net decarbonization.
  • To accelerate hydrogen projects, additional funding of 200 million euros is set aside for research, and the Commission is committed to completing the assessment of the first Major Projects of Common European Interest by the summer.
  • A Biomethane Action Plan sets out tools including a new biomethane industry partnership and financial incentives to increase production to 35 bcm by 2030, including through the Common Agricultural Policy.

Measures to reduce fossil fuel consumption in industry and transportation

Energy savings, efficiency, fuel substitution, electrification and increased uptake of renewable hydrogen, biogas and biomethane by industry could save up to 35 bcm of natural gas by 2030 in addition to that envisioned in the Fit for 55 proposals.

The Commission focuses on the following objectives:

  • Implement carbon-for-difference contracts to support industry adoption of green hydrogen and targeted funding for REPowerEU under the Innovation Fund, using emissions trading revenues to further support the shift away from Russian dependence on fossil fuels.
  • Provide guidance on renewable energy and power purchase agreements and will provide a technical advisory service with the European Investment Bank.
  • Establish an EU Solar Industry Alliance and a large-scale skills partnership to maintain and regain technological and industrial leadership in areas such as solar and hydrogen, and to support the workforce, the Commission.
  • Intensify work on the supply of critical raw materials and will prepare a legislative proposal.

Consistent smart investment measures

Meeting the REPowerEU targets requires an additional investment of EUR 210 billion by 2027. These investments must be borne by the public and private sector, and at national, cross-border and EU level.

Regarding measures involving investment to support REPowerEU:

  • EUR 225 billion in loans are already available under the RRF.
  • The Commission has adopted legislation and guidance for Member States on how to amend and supplement their RRPs in the context of EUENP.
  • In addition, it proposes to increase the RRF's financial envelope with €20 billion in grants from the sale of EU ETS allowances currently held in the Market Stability Reserve, to be auctioned in a market-friendly manner.
  • The ETS not only reduces emissions and fossil fuel use, but also raises the funds needed to achieve energy independence.
  • Under the current MFF, cohesion policy will already support decarbonization and green transition projects with up to EUR 100 billion investing in renewable energy, hydrogen and infrastructure.
  • An additional EUR 26.9 billion could be made available from cohesion funds in the form of voluntary transfers to the RRF.
  • A further EUR 7.5 billion from the Common Agricultural Policy is also available through voluntary transfers to the RRF.
  • The Commission will double the funding available for the 2022 large-scale call of the Innovation Fund this autumn to around EUR 3 billion.
  • The Trans-European Energy Networks (TEN-E) have helped create a resilient and interconnected EU gas infrastructure.
  • Limited additional gas infrastructure, estimated at around €10 billion of investment, is needed to complement the existing List of Projects of Common Interest (PCI) and fully compensate for the future loss of Russian gas imports.
  • The replacement needs of the next decade can be met without locking in fossil fuels, creating stranded assets or hindering our climate ambitions. Accelerating electricity PCIs will also be critical to adapting the electricity grid to our future needs.
  • The Connecting Europe Facility will support this, and the Commission is launching a new call for proposals with a budget of €800 million, with another to follow in early 2023.We are able to help manage business regulatory risk through our regulatory monitoring and regulatory intelligence services.

Contact us for any questions you may have.

Public Hearing on the draft Royal Decree on regulatory innovation in the electricity sector

- -

Draft royal decree establishing the general framework of the regulatory test bed for the promotion of research and innovation in the electricity sector.

The purpose of this Royal Decree is to develop by regulation the general framework of the regulatory test bench conceived as a controlled environment to carry out tests that allow the development of pilot projects, in order to facilitate research and innovation in the field of the electricity sector, pursuant to the provisions of the twenty-third additional provision of Law 24/2013 of December 26, 2013, on the Electricity Sector.

With respect to its structure, the regulation is divided into four chapters, distributed in 24 articles plus two additional provisions and three final provisions.

  • Chapter I contains the general provisions, establishing its purpose and scope of application, as well as the definitions of the main concepts for the purposes of the provisions of the regulation.
  • Chapter II specifies the regime for access and participation of projects in the test bed, regulating the applicable legal regime; the figure of the promoter; the eligibility criteria; the mode of access; the way in which applications will be evaluated; the test protocol, which will be signed by the promoter and the Secretary of State for Energy and will contain the particularities and specific conditions for the corresponding pilot project; the affiliation agreement, which must be signed by the promoter and the participants, and the start of the tests.

In order to provide access to the regulatory test bed, the following steps will be followed:

  1. Specific calls will be held in which projects that meet the eligibility conditions may submit an application.
  2. This will be followed by the pre-assessment phase, which will determine the suitability of the projects for access to the regulatory test bed.
  3. Once the preliminary evaluation has been carried out, the admitted projects will be obliged to sign a test protocol with the Secretary of State for Energy.
  4. After the signing of this agreement, once the activation of the system of guarantees and indemnities foreseen is accredited, the assignment agreements are signed, if applicable, and the other requirements established in this Royal Decree and the corresponding call for applications are fulfilled, the tests may begin.
  • Chapter III establishes the operating regime of the test bank: how the monitoring of the tests and pilot projects will be carried out, the early termination of the participation of pilot projects in the bank, the cases of suspension of the tests of the pilot projects, the right of withdrawal of the participants and the manner in which the results will be evaluated, as well as the provisions relating to the liability regime and the system of guarantees.

Regarding the operating regime of the regulatory test bed, we highlight article 19 related to the evaluation of results, which will establish that, within one month after the pilot project is completed, the promoter will send to the Secretary of State for Energy a report evaluating the results of the project. The minimum information to be contained in the report will be established in the test protocol, and its confidentiality will be guaranteed at all times. If, after the evaluation of the results, the promoter deems it convenient, it may request the Secretary of State for Energy to extend the duration of the pilot project tests, after modifying the test protocol. Finally, the Secretary of State for Energy will prepare a document of conclusions on the development of the pilot project tests and their results, which will be sent to the Coordination Commission. These conclusions will be taken into account for the purposes of the provisions of article 24, and will be published with the necessary reservations in terms of industrial or intellectual property.

  • Finally, Chapter IV contains a series of provisions relating to the possible collaboration of other agents, confidentiality, the regulation of the Coordination Commission, regulatory learning and the preparation of an annual report on regulatory innovation in the electricity sector.

From this chapter it should be noted that the information obtained from the development of the pilot projects, as well as from the report provided for in Article 19, will be taken into account in the procedure for drafting rules with the rank of law and regulations, in accordance with the provisions of Article 26.1 of Law 50/1997, of November 27, 1997, of the Government.

The public hearing ends on April 1, 2022.

Royal Decree establishing the requirements for the provision of energy recharging services for electric vehicles.

- -

Royal Decree 184/2022, of March 8, which regulates the activity of providing energy recharging services for electric vehicles.

The purpose of this Royal Decree is to establish, in accordance with the provisions of Article 48 of Law 24/2013 of December 26, 2013, on the Electricity Sector, the requirements for the provision of energy recharging services for electric vehicles.

The Royal Decree contributes to complete the regulatory framework applicable to the electric vehicle charging activity, on which the Ministry of Ecological Transition and Demographic Challenge is working intensively to boost sustainable mobility and achieve the goal set by the Recovery, Transformation and Resilience Plan (hereinafter PRTR) of having 100,000 public charging points by 2023.

The Royal Decree will enter into force on the day following its publication in the BOE.

Developments at the Council of Ministers meeting held on March 8

- -

FOR THE ECOLOGICAL TRANSITION AND DEMOGRAPHIC CHALLENGE

  • Royal Decree regulating the activity of providing energy recharging services for electric vehicles.
    The Council of Ministers has approved a Royal Decree that regulates the activity of providing energy recharging services for electric vehicles and defines the rights and obligations of the agents involved in the activity.
    The Royal Decree defines the two legal entities that may participate in the recharging activity:
    - The operator of the recharging point, holder of the exploitation rights of the recharging stations and responsible for their physical operation.
    - The electric mobility service provider company, an intermediary between the operators and the users of electric vehicles, which can provide value-added services to such users.
  • Agreement approving the Strategic Project for the Recovery and Economic Transformation in Circular Economy (PERTE EC).
    The Council of Ministers has approved the Strategic Project for Economic Recovery and Transformation (PERTE) in Circular Economy, a plan aimed at accelerating the transition to a more efficient and sustainable production system in the use of raw materials that aims to meet the objectives contained in the Spanish Circular Economy Strategy for the year 2030.
    In this way, PERTE is committed to the three fundamental objectives for the advancement of the Circular Economy in Spanish industry:
    - The promotion of the eco-design of products to make them more durable and repairable from their very origin, reducing waste.
    - Improving waste management through treatment plants that increase reuse, recycling and the incorporation of recovered raw materials in the production of new goods.
    - And the promotion of digitalization linked to both objectives, which will improve the competitiveness and innovation of the industrial fabric in any sector.