The renewables sector has asked the Government for an “extension” of its current reasonable profitability from 2020 until there is a new remuneration framework to replace the one that expires on 31 December.
At a press conference, the director general of the Association of Renewable Energy Companies (APPA), Jose Maria Gonzalez Moya, said that “the hope” of the sector is not to change the current rate of 7.39% and is extended until the Executive can approve this necessary royal decree law to establish the compensation for the period 2020-2025.
At present, the reasonable profitability of renewables is set at 7.39%, as a result of the sum of interest on the ten-year Spanish bond plus 300 basis points established in the past. However, in the absence of new regulations, this remuneration could either remain unchanged or fall to just over 4% due to the drop in interest on the Spanish bond.
However, the current situation of the current Executive, with a general election on 10 November, complicates the fact that a royal decree law, which should be supported by the Congress of Deputies, can be passed before this regulatory period expires, despite the fact that the Government already launched a draft law earlier this year in which it practically respected this profitability (7.09%) and guaranteed that the current one would remain frozen for installations prior to 2013.
In this regard, the president of APPA, José Miguel Villarig, showed his confidence that all parliamentary forces will endorse a law that recognizes not apply a new adjustment to the remuneration of renewables, as they have defended, and thus avoid returning to “conflict and judicialization” in the sector. “We want to be optimistic that he will be on the right track,” he said.