Renewable energy sources in the Spanish electricity market: Instruments and effects

The implementation of Directive 2001/77/EC on the promotion of electricity produced from renewable sources sets a target of 22.1% of electricity consumption in the EU in 2010, and establishes various mechanisms that member countries may adopt depending on their needs. This paper analyses these mechanisms, their implementation in Spain by means of RD 661/2007 and the degree of fulfilment of objectives. It concludes with an analysis of the effectiveness of the mechanisms adopted and recommendations on market design.