Legislation in Spain

  • Legislation in Spain

    Spain's 2020 target is to save 121.6 Mtoe of primary energy or 15.9 Mtoe of final energy. In June 2014, Spain told the European Commission it would be using a system of energy efficiency obligations (6,356 ktoe), a package of alternative measures (4,662 ktoe), and the creation of a National Fund for Energy Efficiency (4,961 ktoe). The policy was enshrined in the Royal Law Decree 8/2014 of 4 July, which establishes the system of obligations and the National Fund for Energy Efficiency. Subsequently, Law 18/2014 was published on 15 October 2014 to implement the strategy.
  • Bond System for Natuonal Energy Efficiency Fund

    Current situation

    Law 18/2014 established a system of obligations for gas and electricity suppliers, oil product wholesalers and LPG distributors.

    The system came into force with the publication of the Law on 17 October, 2014 and will run until 31 December, 2020.

    Annual energy saving quotas for “obligated entities” (1.5% of annual energy sales) and their financial equivalence were set by an order of Spain's Ministry for Industry, Energy and Tourism and take the form of a contribution to the National Energy Efficiency Fund (FNEE). FNEE is managed by the Institute for Energy Diversification and Savings (IDAE). Contributions must be made by the 28 February, 30 April and 30 June each year.

    The law allows that a mechanism for accrediting energy savings could be developed in Spain via the use of Energy Saving Certificates (TEEs).

    History

    2014
    Royal Decree Law 8/2014, implemented by law 18/2014, set an energy savings target for 2014 of 131 ktoe, or 1,523.26 GWh. The financial equivalence was set at €0.79 million/ktoe saved or €69.9 million/GWh saved. The total contribution owed by the 114 obligated firms to the FNEE was €103,454,332.

    2015
    Ministerial Order IET/289/2015 set the 2015 target at 262 ktoe, or 3,045.51 GWh. The financial equivalence was left unchanged. The total contribution was €243,960,873.47 (including adjustments in respect of 2014), split this time between 489 obligated parties.

    2016
    Ministerial Order IET/349/2016 set the same target for 2016 as for 2015, with the same financial equivalence. The total contribution that year was €216,771,504.11 (after adjustments for 2015), split among 520 obligated parties. There was also an additional €1,704,585.92 contribution in the annual distribution.

  • Action League of the National Energy Efficiency Fund

    The FNEE draws its budget from a range of sources: the European Regional Development Fund (ERDF), contributions from the obligated parties under the obligations system, contributions of the central government budget and any other resources available to finance energy saving and energy efficiency projects.

    New grant allocations introduced in 2016 were intended to promote energy efficiency improvements in desalination and rail system plants and energy renovation of buildings. The budget for these new 2016 initiatives totalled €82 million.

    These initiatives were in addition to those launched in 2014 and 2015: municipal street lighting, SMEs and large corporates, transport systems and an “Energy Efficiency” communications campaign.

    The fund's 2016 budget was €207 million.

  • Alternative measures

    Spain also planned a number of alternative measures - tax breaks, grants, and education and training programmes - which involve energy-efficient technologies and techniques to help cut final energy consumption.

    Various proposals were adopted, some still on the drawing board and some already up and running for the term of the Directive, between 1 January, 2014 and 31 December, 2020.

    These included:

    • Law 15/2012 on tax measures for energy sustainability
    • The PAREER-CRECE programme of grants for energy renovation
    • An electric mobility project (MOVELE)
    • Incentives for fuel-efficient vehicles (PIVE)
    • Eco-driving programme
    • The JESSICA – FIDAE fund
    • The GIT programme
    • Various communication campaigns
  • Community-based financial grants

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