Pérez-Llorca analyses the impact of Royal Decree-Law 23/2020 on energy

Pérez-Llorca held a webinar to analyse the main new features introduced in relation to energy by Royal Decree-Law 23/2020, with special reference to their impact on projects for the development of renewable energy generation facilities. The virtual meeting was attended by Marina Serrano, Of Counsel of Pérez-Llorca and President of the Association of Electricity Companies (aelēc), and Ana Cremades, Energy and Administrative Law Counsel of Pérez-Llorca and State lawyer on leave of absence.

If you were unable to attend or wish to view this webinar again, you can do so by clicking on the video below:

The session was opened by Marina Serrano, who explained that the Royal Decree-Law 23/2020 has been approved with the aim of advancing the goal of decarbonising the economy. Specifically, Serrano highlighted the need to promote the decarbonisation and sustainability agenda and to meet the national objectives established for 2030 in relation to the reduction of greenhouse gases, renewable energies and energy efficiency, as reasons for the urgency of its approval. Likewise, the Of Counsel stressed the importance of this Royal Decree-Law as a lever to promote economic recovery after the COVID-19 health crisis through investment in renewable energies.

To conclude her presentation, Serrano outlined the three main issues contained in Royal Decree-Law 23/2020 in relation to renewable projects. Firstly, the measures relating to permits for access and connection to the networks; secondly, the creation of a new remuneration system that allows new renewable energy projects through competitive tendering procedures; and finally, the simplification of administrative procedures, which in many cases create barriers and delays to investment.

Ana Cremades, meanwhile, looked in depth at the content of the regulation and its importance for the energy sector and, in particular, for renewable energy projects. Cremades began by analysing the first block of measures relating to access and connection permits. Here, she explained that new administrative milestones are established, the term of which is fixed according to the age of the permits and the nature of the administrative procedure, and the lack of compliance in time and form determines the expiration of the access and connection permits.

Next, she outlined the main features of the new remuneration system for the generation of electricity from renewable sources. Cremades indicated that this system is based on the long-term recognition of a fixed price for energy, that it will be granted through competitive bidding procedures and that the product to be auctioned will be electrical energy, installed power or a combination of both.

To conclude the virtual colloquium, Ana Cremades analysed the third block of measures contained in Royal Decree-Law 23/2020, which refers to the simplification of the authorisation procedure for installations. In Cremades’ eyes, an essential element of this section is the definition of the concept of non-substantial modifications. She explained that the measure enables the relevant Public Administration to establish that certain types of non-substantial modifications to installations do not require Prior Administrative Authorisation (PAO) or Administrative Construction Authorisation (AAC).

To conclude, both speakers initiated a debate on the main issues that, from a practical point of view, arise in relation to the interpretation and application of the new regulations.