With the approval of Spanish Royal Decree/Law 1/2012 of the 27 January the pre-assignment of payments have been suspended and awarding of economic incentives have been abolished for new electrical production installations that use renewable energy resources. We have therefore been obliged to search for alternative solutions and it now makes sense to start thinking about not depending on subsidies for the development of this type of project. This is what we call the Direct Marketing model. .
In Spain, the options for Direct Marketing are:
- Exclusive supply line for connecting the consumer with the producer.
- Bilateral energy purchase contracts.
- The sale of electricity to the grid and the generation of green certificates (GCs) and/or origin guarantees for commercialisation in other markets.
The fundamental keys to the success of this model are the following:
- Projects developed in an area with maximum solar radiation.
- Economies of scale (medium-large sized projects).
- Low cost projects:
- Low cost land and/or roof rental.
- Low cost council rates.
- Low cost evacuation conditions.
- Low cost main equipment, modules, inverters, etc.
In accordance with Spanish Royal Decree 661/2007, in Spain there are two ways of selling electricity connected to the national grid:
- Connection to the national grid and economic payment through a fixed feed-in tariff (FIT).
- Connection to the national grid and economic payment established by the electricity free market, which in this case is a variable price.
In this way, it is possible to develop photovoltaic solar installations connected to the grid with the sale of the energy produced in the electricity free market. In fact, the same Royal Decree 661/2007 allows the energy producer to change from an economic payment model to another model for complete yearly periods as long as two months notice is given.
In Spain, any photovoltaic installation connected to the grid requires an agency or representative service from the electricity market so as to act before the electricity market operator (OMEL). These companies are responsible for the commercialisation of the energy produced and they are authorised to work with the OMEL and try to obtain the best price for photovoltaic production in accordance with the time zone in which the energy is produced (mainly 10-19 hours depending on the season) and assume production deviations.
There are other ways of selling green energy:
1. BILATERAL AGREEMENT
This model establishes a contractual agreement between large energy consumers and photovoltaic producers. In this case it would be necessary to pay the charges for the use of the grid.
2. DEDICATED OR EXCLUSIVE SUPPLY LINE
In this case, the consumption installation is physically connected to the energy generation source.
3. GREEN CERTIFICATES
The energy from photovoltaic solar installations can generate Green Certificates or Electricity Origin Guarantees. These certificates can be sold in both Spain and outside of Spain. Combined with energy sale in the free market, they improve the economic profitability of installations.
ENERGÉS offers all of its technical know-how and knowledge of the sector to bring together both the interests of the consumer and the installation’s developer at three levels:
- Impulsion and coordination of the search for a producer and energy consumer agreement.
- Legalisation and construction of the plant.
- Plant operation and maintenance.