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Faculty of Economics

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Mir-Artigues, P.

The Photovoltaic Crisis and the Demand-side Generation in Spain

CWPE1311

Abstract: The RES-E promotion policy in Spain gave priority to the photovoltaic (henceforth, PV) ground-mounted installations. For years, the coupling of customer-side generation coupled with excess energy exports was never specifically considered. However, some months ago this option was suggested as a way to recover the Spain’s PV sector from the current moratorium on the RES-E policy. A decree draft on on-site generation was issued, its central point being the consideration of electricity exports as delayed consumption rights. But several barriers hinder its entry into force. Unfortunately, Spain could be losing an important opportunity for encouraging PV investments while retail grid parity is being reached. This working paper analyzes the different types of PV demand-side generation from the point of view of consumer-generators and evaluates the economic and technical features of the regulation proposed in Spain and to date still pending.

Keywords: Distributed on-site generation, net metering, Spain.

JEL Codes: Q42 Q48

PDF: http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe1311.pdf

EPRG Paper Link: 1307

Open Access Link: https://doi.org/10.17863/CAM.5749