The new Royal Decree, passed at the proposal of the Ministry for the Ecological Transition and the Demographic Challenge (MITECO), has been received with optimism by energy stakeholders. It modifies the existing Royal Decree 413/2014 applicable to RECORE facilities — which represent around 10% of installed solar capacity — introducing adjustments to guarantee regulated profitability under zero or negative-price scenarios, thereby correcting market distortions not foreseen in the original regulation.
In Tuesday’s announcement, the Government explained that the reform removes penalties for hours when electricity is sold at zero price or not dispatched due to technical restrictions — a situation that, in recent years, has jeopardised the profitability of numerous installations.
Marcos Valles, Director of Quinto Armónico, believes the new framework “eliminates one of the greatest fears” and “prevents the bankruptcy of ageing facilities”, allowing them to continue contributing to the energy mix — particularly in a context of around 800 annual hours with zero or negative prices (784 hours in 2024 and 607 in the first half of 2025).
The measure could have an immediate effect on the economic recovery of special-regime plants. By removing the penalty for non-counted hours, installations that had lost up to 30% of their regulated premium could recover between 20% and 30% of their annual income, according to estimates from operators consulted by UNEF.
In practical terms, this will help stabilise cash flow, improve access to financing, and ensure the operational continuity of ageing facilities.
Speaking to Strategic Energy Europe, Vallés explained: “The settlements now being received correspond to the 2024 fiscal year, so we will have to wait for the final document to know whether the measure will have retroactive effect or only apply from 2025 onwards.”
The analyst expects the decision to encourage investment in maintenance and repowering, allowing existing assets to maintain their regulated margins even amid high price volatility. Greater revenue predictability will also reinforce investor and banking confidence in RECORE assets, consolidating their value in a market where flexibility and availability are increasingly critical.
Storage: Dispatch priority and accelerated expansion
The new Royal Decree marks a turning point for energy-storage development in Spain. By maintaining dispatch priority for renewable facilities integrating batteries, MITECO removes one of the main regulatory uncertainties that had slowed hybridisation.
Valles stated that this measure “eliminates regulatory fear” and ensures that plants incorporating batteries will not lose their renewable status or grid-access priority — paving the way for hybrid projects to “multiply over the coming years.” He also highlighted that this regulation, together with the forthcoming emergency decree exempting hybridisations within photovoltaic perimeters from environmental assessment, “will bring storage into the present”, accelerating the deployment of new flexibility solutions that will enhance system stability, regulation capacity, and price reduction during peak hours.
However, it is important to note that the industrial sector may be negatively affected by this change. Jorge Antonio González Sánchez, Director of Energy and Projects at Losán, told Strategic Energy Europe that the new hierarchy “could penalise industrial installations dependent on cogeneration, as they will be relegated in dispatch order despite having invested under long-term profitability frameworks.”
According to González, the reform “makes sense from a decarbonisation perspective” but “affects long-standing business models” that were built with 20- to 30-year horizons. “If we harm industry, we harm demand — and if we harm demand, we also harm renewables,” he summarised. In his view, regulatory progress must be accompanied by a strong industrial policy to mitigate these effects, ensuring that the energy transition does not create imbalances between renewable supply and the productive fabric.
Real-time telemetry: Effects on system operation
The new framework also expands the obligations for connecting to control centres and transmitting real-time telemetry data, both for generation plants and storage systems, as well as demand facilities connected to the transmission grid. This measure, strengthening the visibility and supervision of the electricity system, is viewed by experts as a necessary step towards a more flexible and secure network.
From Vallés’ perspective, the change “does not represent a significant technical obstacle, as modern installations are already equipped for real-time data transmission.” For older facilities — those commissioned before 2015 — some additional investment will be required, though these are “domestic-scale investments of around €300”, he explained. Vallés added that real-time telemetry can be implemented simply “by installing an analyser at the grid connection point or a meter linked to the internet and a control centre,” meaning it should not pose a significant technical challenge.
He concluded by noting that “coordination with Red Eléctrica must remain smooth to avoid unnecessary costs or requirements for smaller operators.”
