Photovoltaic Sector Responds to Royal Decree-Law 14/2010

19 January 2011

Facing the recent approval by the Spanish Government and entry into force of the last regulatory modification related to the photovoltaic field, the main business associations of the sector (AEF, ASIF and APPA) have responded by requesting the Spanish Deputies to decline in Congress the approval of the Royal Decree-Law 14/2010 of December 23, which establishes urgent measures in order to correct the tariff deficit in the electricity sector.

The reason for this request is based on the fact that this regulation has been approved in the format of a Royal Decree-Law, and therefore as a legally binding rule (and not as non-statutory regulation, as it would have been a common practice in this field). It has to be ratified by the Congress of Deputies until January 24 in order to have full legal effect. This Royal Decree-Law introduces certain limitations (i) related to the equivalent operating hours entitled to a regulated tariff for photovoltaic plants, and (ii) regarding the length of the period for the photovoltaic installations to receive the tariff, which is now established at 28 years.

Additionally, Spanish and foreign investors are looking into possible ways of taking legal actions against this new regulation.

For further information please contact Antonio Jiménez: