Game Changer: Green Light for Offshore Wind in Spain
After years of delay, Spain's new regulation paves the way for offshore wind energy.
The new regulation, which took form of Royal Decree 962/2024 of 24 September ("Regulation"), subjects offshore renewable installations to a competitive bidding process —with some exceptions (e.g., installations that are innovative or located in State ports of general interest). In summary, the process is as follows:
- Initial Ministerial Orders will be issued establishing the general rules for each auction.
- Public consultation. During this phase, any person can submit comments or improvement proposals for each auction.
- Auction calls. A second Ministerial Order will announce the auctions. The market expects the first call to take place in 2025. To select winners, the primary criterion will be economic, though qualitative, non-economic factors may be considered, accounting for up to 30% of the total score. Additionally, the auctions may impose requirements related to technical solvency, experience, size, or other economic-financial aspects of potential bidders to ensure the highest possible execution rate within the set deadlines.
- Awarding. The authorities will select the winning bidders. They will simultaneously receive: (i) a reservation of grid connection capacity; (ii) priority for the concession to occupy the maritime-terrestrial public domain; and (iii) enrollment in the economic remuneration regime for renewable energy in a pre-assignment status.
- Post-award procedure. Similar to other electric auction processes, after the award, the awardees must apply for the required authorizations, including the access and connection permits, the electric sector prior administrative authorization, construction and commissioning authorizations, and the concession to occupy the maritime-terrestrial public domain. The Regulation requires prior administrative authorization for any change in ownership of the rights granted through the competitive bidding process.
Lastly, it is important to note that the location of all offshore projects will be limited to areas identified as high potential for offshore wind development. These areas were set forth in the maritime spatial plans approved by Royal Decree 150/2023 of 28 February, whose validity was recently confirmed by the Spanish Supreme Court (July 2024). Nonetheless, this judgment does not prejudge further appeals against the auction calls or the granting of permits which are likely to be submitted by environmental or fishing associations.
