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Publisher: DIKEOS Abogados

Photovoltaic plants in Spain: The period for part of the law suits against the reduction of the feeding-in tariff expires on November 23, 2011

Madrid - For operators of those photovoltaic plants in Spain that are subject to the remuneration system established in Royal Decree 661/2007, the period for presenting a Court claim for financial responsibility of the Spanish State for the reduction of the plants remuneration cycle to 25 years expires on November 23, 2011.

Originally, the payment of the incentived remuneration according to Royal Decree 661/2007 was not limited in time. The amount of the feeding-in tariff was just reduced to 80% after 25 years, but was then to be paid for an unlimited amount of additional years of lifetime of the installation. This has been changed by a new legal regulation that has entered into force on November 24, 2010 and that retroactively concerns all photovoltaic installations that have been connected to the grid before September 29, 2008. The remuneration cycle has just been limited to 25 years, earning the plant only the (unincentived) market price for electricity afterwards.

By end of 2010 another new legal regulation, which also affects retroactively the remuneration system established in Royal Decree 661/2007, has again extended this period to 30 years, even without any step-down to 80%. By this extension from 25 to 30 years the Spanish legislator wishes to establish a compensation for the fact that he has limited the payment of the feeding-in tariff to 1.250 solar hours pro annum through the years 2011 to 2013, and to a relative maximum of solar hours pro annum for the time as of 2014.

Despite the legal actions taken by various associations against the constitutionality of the new legal regulations it is recommendable to present individual law suits against the retroactive amendments of the retribution system.

The period for part of these law suits expires on November 23, 2011, that is for those law suits that require the direct presentation of a neutral expert’s opinion on the details of the suffered financial damage. Here things have to be prepared now urgently. In addition, the monthly settlements of the remuneration for the injected energy should be challenged insofar as they are affected by the new legal regulation.

For operators of plants that are subject to the remuneration system established under Royal Decree 1578/2008, the referred period expires one month later, on December 23, 2011. Here the law suit is for the limitation of the feeding-in tariff to a relative maximum of solar hours per year (in relation to the nominal power of the plant!).


Madrid, November 3, 2011


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