World Small Hydropower Development Report 2013
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1 World Small Hydropower Development Report SPAIN
2 Disclaimer Published in 2013 by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) UNIDO and ICSHP All rights reserved This report was jointly produced by United Nations Industrial Development Organization (UNIDO) and International Center on Small Hydro Power (ICSHP) to provide information about small hydropower. The document has been produced without formal United Nations editing. The designations employed and the presentations of the material in this document do not imply the expression of any opinion whatsoever on the part of the Secretariat of UNIDO and ICSHP concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries, or its economic system or degree of development. Designations such as developed, industrialized and developing are intended for statistical convenience and do not necessarily express a judgement about the stage reached by a particular country or area in the development process: Mention of firm names or commercial products does not constitute an endorsement by UNIDO or its partners. The opinions, statistical data and estimates contained in the articles are the responsibility of the author(s) and should not necessarily be considered as reflecting the views or bearing the endorsement of UNIDO and its partners. While every care has been taken to ensure that the content is useful and accurate, UNIDO and ICSHP and any contributing third parties shall have no legal liability or responsibility for the content or the accuracy of the information so provided, or for any loss or damage caused arising directly or indirectly in connection with reliance on the use of such information. Copyright: Material in this publication may be freely quoted or reprinted, but acknowledgement is requested, together with a copy of the publication containing the quotation or reprint. Recommended citation: Liu, H., Masera, D. and Esser, L., eds. (2013). World Small Hydropower Development Report United Nations Industrial Development Organization; International Center on Small Hydro Power. Available from
3 4 Europe 4.3 Southern Europe Spain European Small Hydropower Association, Stream Map Key facts Population 47,042,984 Area 505,370 km 2. 1 Climate Temperate; clear, hot summers in interior, more moderate and cloudy along coast; cloudy, cold winters in interior, partly cloudy and cool along coast Topography Large, flat to dissected plateau surrounded by rugged hills; Pyrenees Mountains in north Rain pattern Electricity sector overview The total net electricity production in Spain was 280 TWh in 2011, of which approximately 6 TWh was exported and 3 TWh was used for pumped hydro. The domestic demand was about 270 TWh. 2 The electricity mix is shown in figure 1. Bio Fuel/Gas Solar Other Hydro Wind Coal CCGT Nuclear 2% 3% 3% 11% 11% Figure 1 Electricity generation in Spain Source: Red Electrica de Espana 2 15% 16% Small hydropower sector overview and potential In 2010, Spain had 1,047 small hydropower plants and a total installed capacity of 1,926 MW generating 4,719 GWh (figure 2). By 2020, the aim is to have 1,100 plants with a total installed capacity of 2,185 MW (6,280 GWh). 3 SHP installed capacity SHP potential Average annual precipitation is 650 mm. In wet Spain as a whole this rises to around 1,000 mm, in semiarid areas 300 mm. Figure 2 Small hydropower capacities in Spain 19% 0% 5% 10% 15% 20% 1926 MW 20% 2185 MW The average small hydropower growth over the last 10 years had barely reached 2.1 per cent annually, this translates into a capacity increase of 36 MW per year on average. Growth was low due to a series of barriers that have virtually paralyzed the sector. The previous Renewable Energies Plan (PER) set out for small hydropower sector to achieve a total installed capacity of 2,199 MW by This was not achieved for plants under 10 MW by Renewable energy policy In 1981, the first Royal Decree was approved, establishing fixed tariffs for small hydropower and thereby, paving the way for the Special Regime for electricity production based on renewable energies introduced in the mid-1990s. Besides, the development of small hydropower laid the ground for the involvement of the banking sector regarding financing renewables in Spain. i Legislation on small hydropower There is currently no regulation published concerning the residual flow. A recommendation could be made in the sense that this flow should be variable during the year, to enable a better adjustment to the differences of the natural hydrological regime and to the spawning seasons. There are two different support options (following the current promotion scheme as established through the Royal Decree 661/2007), a feed-in tariff (FIT) and a market premium with a cap and a floor, on the sum of market price and premium. Plants with a rated power less than 10 MW as well as those with a rated power greater than 10 MW (but less than 50 MW) are considered small-scale hydropower plants. However, on 27 January 2012, the Spanish Council of Ministers approved a Royal Decree- Law temporarily suspending the FIT pre-allocation procedures and removing economic incentives for new power generation capacity involving cogeneration and renewable energy sources (RES-E). Barriers to small hydropower development In Spain, it takes an average of six years to obtain the permits for construction and operation, and there are numerous requests for hydropower concessions pending for longer time, some reaching 20 years. This is mainly because of the lack of coordination between the different authorities responsible for the permit procedures. Furthermore, there is an increasing number of administrative and economic barriers for small hydropower through new preconditions for participating in the electricity market, such as the management of deviations, rules regarding the ride through of voltage dips and new flow measurement systems. In addition, there is an increase of existing taxes, as building permits to introduce the 1
4 electromechanical elements of the small hydropower plants, as well as new taxes and fees for the existence of reservoirs and later a qualified (real) property tax (IBI), royalties, land value taxes. Likewise, there is a growing difficulty to obtain the necessary construction sites as the land-owners are demanding higher compensations to make them available. It is also important to state the difficulty felt to obtain grid connection for affordable prices and that there have been problems with the expiration of concessions of existing plants with no solution on the horizon. Another important administrative and economic hurdle is the pre-allocation registration, where all renewable electricity production units must be included before being allowed to join the Special Regime and that has established a vast number of preconditions as described above (cf. power granting schemes). With the moratorium ii in place, especially if it became effective for a longer period and having in mind the long lead times of new small hydropower facilities in Spain, it is more likely that the new national small hydropower target for 2020 (both in the Spanish National Renewable Energy Action Plan in the new PER ) of 2,185 MW will not be fulfilled. In any case, even to fulfill these (very) modest small hydropower targets for 2020, besides maintaining a stable and foreseeable support scheme for small hydropower within the Special Regime, it will be necessary to establish measures such as: New rules for administrative procedures and concessions: Streamlining current procedures for water planning in the river sections where hydropower plants can be implemented under certain conditions, such as residual flows. Establish a new unified administrative procedure for water concessions, or modification of the existing ones, applicable for hydropower plants up to 50 MW. Promotion of tenders in existing public infrastructures, with new rules for the renovation of concessions and the possibility of modification of concessions already granted. Establish the possibility to modify existing water concessions for electricity generation by the responsible authority (i.e. to avoid the process of competing for water concession in cases where the modification does not cause an increase or decrease of the maximum flow nor of the capacity installed greater than 50 per cent of the originally amounts granted and consistent with the River Basin Management Plan in force). New frameworks/incentives for new types of plants and for rehabilitation, modernization and replacement of facilities: Develop a regulatory framework to promote the development of reversible hydropower plants or expand existing ones. Take advantage of existing infrastructure, consistent with current water planning and preserving the environmental. Incentivize the rehabilitation, modernization and/or replacement of existing small hydropower. Promote the rise of the available hydropower potential in the territory of the Hydrographic Confederations iii by conducting specific studies to analyze the technical, economic and environmental feasibility of up to 41 state-owned dams to be used as hydropower plants and drafting of the specifications that will serve as a basis for tenders for those classified as viable. 3 Notes i. In February 2013, the Spanish Government decided to abolish the remuneration option for Renewable Energy Directive (RES-E) power based on the market price and feed-in premium. It changed the mechanism of indexing RES-E remuneration to the consumer price index and decoupled it from food and fuel price increases. 4 ii. The Spanish administration passed down the Royal Decree 1/2012 that suspends feed-in tariffs for newly installed generators of renewable power. iii. The Hydrographic Confederations are public entities in charge of river basins under the Ministry of Environment, Rural and Marine Affairs of Spain; and autonomous bodies under the Department of State for Water and Rural Affairs. References 1. Central Intelligence Agency (2012). The World Factbook. Available from 2. Red Electrica de Espana (2012) The Spanish Electricity System. Madrid, Spain. 3. European Small Hydropower Association and Intelligent Energy Europe (2012). Stream Map for Small Hydropower in the EU-27 in the view of the 2020 targets. Available from 4. Couture, T.D., Bechberger, M. (2013). Pain in Spain: New Retroactive Changes Hinder Renewable Energy, 19 April Renewable Energy World. Available from 013/04/pain-in-spain-new-retroactive-changeshinders-renewable-energy?cmpid=rss. 2
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