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REGULATORY FRAMEWORK OF OPPORTUNITY

 

 

The framework of the energy and climate policy in Spain is determined by the European Union (EU), which, in turn, is conditioned by a global context in which the Paris Agreement stands out, reached in 2015 and which is the most ambitious international answer to date in trespect of the challenge of climate change.

The Union ratified the Agreement in October 2016, which allowed its entry into force in November of that year. Spain did the same in 2017, establishing with it the starting point for energy policies and climate change in the horizon to 2020.

Also, in 2016, the European Commission presented the so-called “winter package” “Clean energy for all Europeans” (COM2016 860 final) that has been developed through various regulations and directives. They include reviews and proposals

legislation on energy efficiency 1, renewable energies 2, electrical market design, security of supply and governance rules for the Energy Union 3, all with the aim of reducing greenhouse gas emissions, increasing the proportion of renewables in the system and improve energy efficiency in the Union by the 2030 horizon.

This new regulatory and political framework provides regulatory certainty and generates the favorable environmental conditions for carrying out the important investments that need to be mobilized. It also empowers European consumers to become active players in the energy transition and sets binding targets for the EU in 2030:

  • 40% reduction in greenhouse gas (GHG) emissions compared to 1990.
  • 32% of renewables on total gross final energy consumption, for the entire EU.
  • 32.5% improvement in energy efficiency.
  • 15% electricity interconnection of the Member States.

To the above we must add that the European Commission updated on 28 November 2018 its road map towards a systematic decarbonization of the economy with the intention of turning the European Union into carbon neutral by 2050

Based on the aforementioned frame of reference and the commitments already reached, this will be regulated through the Integrated National Energy and Climate Plan (PNIEC) 2021-2030 that, which in the Spanish case, is in the final stage of preparation for submission to the European Commission as a draft and subsequent processing and approval before January 1, 2020.

The draft of PNIEC 6 establishes ambitious goals and commitments for 2030 in terms of emission reduction, participation of renewables in final consumption and energy efficiency. It also reflects that, from an economic efficiency perspective, the fulfillment of these objectives requires a special effort in the electrification and final energy uses, in the first place, and the massive integration of renewable technologies in the generation of electricity, in second place.

This draft establishes as a fundamental requirement for the transition process energy, provide a stable and attractive regulatory framework that attracts large investments in renewable generation assets, as well as an adequate planning of the transport network that allows the massive integration of new renewable generation at the necessary pace to reach the commitments in the medium and long term, guaranteeing the safe operation of the electrical system