New Circular (1/2008) on the guarantee of origin of electricity produced from renewable energy sources or high efficiency cogeneration

The Spanish National Commission of Markets and Competition has updated the circular that regulates the system of guarantees of origin of electricity produced from renewable energies to introduce the legislative and regulatory changes occurred in recent years.

The Official State Gazette issued 27 April 2018, published the new Circular 1/2018, of 18 April 2018, of the National Commission of Markets and Competition (CNMC) , that regulates the system of guarantees of origin of electricity produced from renewable energy sources and high efficiency cogeneration. This new circular replaces the old Circular 6/2012 of the extinct Spanish National Energy Commission.

With this new circular, the CNMC updates all the changes caused by the transposition of Directive 2012/27/EU by Order ITC/1522/2007 of the Ministry of Energy, Tourism and Commerce; the Electricity Sector Law 24/2013; Royal Decree 413/2014, that regulates the production of electricity from renewable energies, cogeneration and waste; and, the Law on the Creation of the CNMC 3/2013.

A few of the main changes introduced in the new circular are as follows:

• In relation to the import of guarantees of origin, the circular now requires the specification of the platform or mechanism that manages the guarantees of origin; the identification of the issuance entity of the guarantees of origin; and, the compliance with its requirements. When the importation of a guarantee of origin is first requested, it is mandatory to present the document of adherence to the guarantees of origin signed by the retail supply company that imports the guarantees of origin (or the companies that it will be transferred to).

• In relation to the exportation of guarantees of origin, the circular mentions that, besides being exported to other EU member states, guarantees can now be exported to other states that signed bilateral or multilateral agreements, notwithstanding the fact that said request of exportation now entails the need to renounce the specific remuneration regime that applies to each guarantee of origin according to the Royal Decree 413/2014.

• The procedure of redemption of guarantees of origin has been separated from the procedure of cancellation. The redeemed guarantees of origin will now be assigned to an electricity consumer identified with its CUPS code. The procedure will be performed by the owner of the facility or by its retail supplier (in the latter case, the retail supplier can only redeem CUPS codes from clients actually supplied during the validity of the guarantees of origin).

• In relation to deadlines of submissions of requests and procedures, the applicable deadlines are as follows:
  • Request of expedition / exportation of guarantees of origin: Before the last day of the month m+8; in any event, before 31 January of each year
  • Expedition of guarantees of origin related to production month m: Before the last day of the month m+10; in any event, before 28 February of each year
  • Request of importation of guarantees of origin n: Before 15 February of year n+1; and
  • Request of transfers, imports or redemption after the sale of guarantees of origin corresponding to year n: Before 10 March of year n+1