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      "body": "<center>![](https://cdn.steemitimages.com/DQmTWE5UeNSWubxHr2AwSBXBDcnjAXYqj5iGP2D2LgTXwtG/image.png)</center> \n\n<div class=\"text-justify\">   \n\n\nIn our previous post we [introduced the concept of energy self-consumption](https://pylon-network.org/energy-self-consumption-introduction.html), where we explained what kind of facilities exist, and what benefits Pylon Network can offer to the owners of these assets.\n\nIn this second part, we will talk about the types of self-consumers connected to the grid and how they affect (and are affected by) current legislation in Spain.\n\nPart 1 - Energy Self-consumption: Introduction.\n**Part 2 - Energy Self-consumption: Current state legislation and Types of self-consumers connected to the grid.**\nPart 3 - Energy Self-consumption: Domestic.\nPart 4 - Energy Self-consumption: Industrial.\n\n## Part 2 - Energy Self-consumption: Current state legislation and Types of self-consumers connected to the grid\n\nOn October 9, 2015, the long-awaited Real Decreto 900/2015 regulation came into effect, regulating the different types of electric energy with regards to self-consumption.\nUntil then, it was only possible to sell the generated energy (one could not self-consume his/her own energy). You had to inject **all** your generated energy into the grid and hence, being consumed away from its source of generation and, at the same time, you had to buy **all** your energy from the grid - without knowing where it came from.\n\nIn other words, you could have a solar panel (PV) installation in your house selling energy and obtaining a small payback for it, while the energy that you consumed had to be bought from the network with its corresponding mix of coal, gas, nuclear, wind, photovoltaic, biomass, cogeneration … for which you paid a much higher price - about 3 times higher than the price at which you sold your self-produced solar energy. If this sounds confusing is because it is - a complete nonsense!\nEconomically this system was only viable with the incentives that the government put in place during 2007, paying 11 times (!) higher price (about 0.45 € / kWh) per kWh injected, compared to the market price - exorbitant incentives that were completely unsustainable and of course, were cut drastically in 2010.\nWith the arrival of RD 900/2015, the possibility of self-consumption of electricity, opened up. That is, you can avoid paying the electric company for the energy that you are consuming from your own generation facility (e.g. solar panels), paying only for the energy that you consumed from the grid. **It sounds more logical compared to the previous regulation (and it is!), however, devil is on the details!**\n\nSo let's look a bit closer on the regulation, which defines two types of self-consumers - Type 1 and Type 2\n\n### **Self-consumer type 1**\n\nIt is the type of self-consumer that would benefit a domestic installation or a SME up to 100 kW of photovoltaic power.\n– The surplus energy will be delivered to the grid without receiving any financial support, requesting and covering all costs regarding the connection study to the distributor or, otherwise, they must have an non -injection system (thus avoiding the injection of surpluses into the network).\n– You must register in the administrative record of self-consumption.\n– The facility must be approved by the Territorial Industry Service and comply with the regulations of the corresponding distributor (depends on which part of the grid you are connected to).\n– Those users with contracted power of less than 10 kW are exempt from paying the charges for self-consumption, known infamously as the \"Sun Tax\". North of 10 kW, these tolls must be paid according to their tariff and period.\n\n### **Self-consumer type 2**\n\nIt is the type of self-consumer that would be supported by a large company without maximum photovoltaic power while it is below the price contracted by the supplier of electricity.\n– The surplus energy can be sold at the pool price, assuming the toll surcharges for generation (€ 0.0005 / kWh) and the 7% tax on production (€ 0.0035 / kWh).\n– You must register in the administrative record of self-consumption.\n– The facility must be approved by the Territorial Industry Service and comply with the regulations of the corresponding distributor.\n– The installation must also comply with the connection and access procedures according to RD 1699/2011 and 1955/2000.\n– Sun tax: you must pay the charges corresponding to the rate and period for the self-consumed energy and power, if you have batteries.\n\nThe RD 900/2015, instead of facilitating and adequately regulating self-consumption, it makes it more difficult. The necessary procedures to legalize an installation, added on top of the regulatory costs for self-consumption itself, become a strong financial barrier for the implementation of distributed renewable energy sources.\nSince the publication of the RD, numerous political parties and environmental/energy associations have turned against and pursued it, raising the conflict to the national highest courts and the European Commission.\n\n## What is the 'sun tax'?\n\nThe sun tax is the controversial name that has been given to the tolls / charges for self-consumption of energy. The argumentation behind it is that by self-consuming our own energy we stop paying the network tariffs related to the electricity transportation and maintenance of the gird, as well as a lower collection of VAT and electricity tax.\n\nThe reality is that this component in terms of transportation and maintenance of the network , we already pay in fixed term power, we will continue to pay even if we install self-consumption … moreover it is also demonstrated that the VAT and taxes associated with the creation of employment that generates the installation of renewable energy resources, etc., is enormously greater than the amount that the sun tax implies …\n\n## So.. what should we expect in the future?\n\nWith the legal and social pressure of organized, active citizens and combined with the recent change of government in Spain, it is expected that the sun tax will be eliminated and both self-consumption facilities will be technically and administratively facilitated in the market. At the beginning of June 2018, a draft was published to facilitate regulations regarding the shared self-consumption facilities and with the arrival of the new Minister of Energy, Environment and Climate Change, Teresa Ribera, some changes could be made in favor of renewable energies and the energy transition.\nWhat are our neighboring countries doing?\nSpain is the European country that mostly hinders the development of renewable energy at the particular level of self-consumers. While in other countries the growth of facilities is increasing every year, in addition to having different ways to compensate the energy injected to the network, for example:\n– In Germany and the UK self-consumers get paid for each kWh injected to the grid, without having to pay extra costs for production or connection to the grid.\n– USA, Portugal, Brazil and Australia work with Net Balancing schemes, that means, for each kWh injected to the grid they have the right to consume this kWh at any point they need it. In other words, the network acts as a big battery for prosumers that can save their excess generated solar electricity for the night.\n– Italy and Chile discount from the invoice a quantity of money according to the kWh injected to the grid.\n\n\n**This is the end of Part 2. In the next parts we will look into the two types of self-consumers - residential and industrial - and we will quantify the costs of installation and legislation, as well as the payback periods for each one.**\n\n##### To stay up-to-date with Pylon Network's developments and the exciting news ahead, follow us in our social media and forums (links below)!\n\n</div>\n\n#### Special thanks to Co-author: Vicent Prats Feliu (Electrical Engineer) - http://pratsingenieria.com/\n\n\n\n\n**PYLON NETWORK. The revolution will not be centralized.**\n\n#Peace #Love and #Renewables\n\n**Join Telegram:**\nEnglish: https://t.me/pylonnetworkofficialtelegram\nSpanish: https://t.me/pylonnetworkspanishchannel\n\n**More info:**\nPylon Network Web: https://pylon-network.org/\nPress releases: https://pylon-network.org/blog\nKlenergy Web: http://klenergy-tech.com/\nMail: [email protected]\n\n**Follow us:**\nFacebook Page: https://www.facebook.com/KlenergyTechOfficial/ \nTwitter Profile: https://twitter.com/KlenergyTech\nLinkedIn Profile: https://www.linkedin.com/company/klenergy",
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      "permlink": "energy-self-consumption-introduction",
      "title": "Energy Self-consumption: Introduction",
      "body": "![](https://cdn.steemitimages.com/DQmdphphEE7hc4kpVcyCBX4jBdnzrRzPdoFWLy42S1s4m2x/image.png)\n\n<div class=\"text-justify\">   \n\n*Continuing a habit that begun last month, on Wednesdays we will introduce concepts and topics related to the energy markets. The topic on focus this time, will be discussed in four parts and is a favorite topic of ours: Energy Self-Consumption.*\n\n**The structure of the release schedule is the following:**\n\nPart 1 – Energy Self-consumption: Introduction.\nPart 2 – Energy Self-consumption: Current state legislation and Types of self-consumers connected to the network.\nPart 3 – Energy Self-consumption: Domestic.\nPart 4 – Energy Self-consumption: Industrial.\n\n# Part 1 Energy Self-consumption: Introduction #\n\nIt is known as self-consumption the practice of consuming by the producers the goods or services that they produce. We can find self-consumption in different areas, for example, in agriculture, in livestock, and surely the best known and what else to talk about, in energy.\n\nEnergy self-consumption consists of covering all or part of our energy consumption with energy that we ourselves produce in the same supply where it is consumed.\n\nThe self-consumption facilities can be isolated (without physical connection to the network – outside the electrical system) or connected to the network (prosumers – belong to the electrical system).\n\nIn isolated installations, since there is no physical connection to the network, all the electricity consumption has to be supplied within the generation facility, while, in those connected to the network, what is intended is to supply part of the electricity consumption and , therefore, acquire a smaller amount from the grid, reducing the electric bill.\n\n\n## Isolated Facilities ##\n\nIsolated installations are usually the solution to supply electricity to consumers, when there are technical difficulties to connect to the network, either because of long distance from the grid or because of the need for transformers and other elements that increase the cost of the connection. These facilities consist of generation elements, conversion elements, regulation elements and elements of accumulation (storage). An isolated type installation is one that consists of:\n\n– Photovoltaic solar panels and / or wind turbines as the main generation element\n\n– Inverter-charger as an energy conversion element\n\n– Load regulator as regulation and control element\n\n– Batteries (energy storage) as accumulation element\n\n– Controllable generation source as auxiliary generation elements\n\n![](https://cdn.steemitimages.com/DQmPFXRKfHCDio5jyfu7nidmYWg8DRSa3PhWGZbTyNyUZWA/image.png)\n\nIsolated installations are not usually carried out when there is access to the electricity grid, although with the decrease in prices of recent years in photovoltaic modules and batteries, they are starting to become more competitive. In the second part of the post, next week, we will talk about the development of these prices.\n\n \n\n## Networked Installations – ‘Prosumers’ ##\n\nIn the case of self-consumption facilities that are connected to the network, mostly associated with photovoltaic technology, the objective is to reduce the dependence from the network, taking advantage of the electricity produced by solar radiation. In that way, consumers are transformed to the so-called ‘prosumers’ and can reduce their electricity bill with the solar energy that they are self-generating.\n\nIn self-consumption facilities connected to the network, the main elements are reduced to two – generation elements and energy conversion elements:\n\n– Photovoltaic panels and / or wind turbines as generation elements\n\n– Inverter as an energy conversion element\n\n![](https://cdn.steemitimages.com/DQmdjk8WzspkT8iPYtRypVWGyosm6YGLh2zmHNRbPwQk7dC/image.png)\n\nThese facilities are much cheaper than isolated ones, as they do not necessarily include energy storage or auxiliary generation. They are still connected to the network, using it to complement the (lack of) solar generation – supply during nights or on cloudy days.\n\nIt is important to properly dimension an installation so that it can cover the real energy needs of the end-user in order to minimize the excess generated energy, which in most cases goes to “waste” – the surplus energy generated from these facilities is not currently not monetized (e.g. in Spain).\n\nThe graph below shows an example of electrical consumption and generation of a domestic PV installation, for one day (24 hours) of June, in Spain.\n \n![](https://cdn.steemitimages.com/DQmbqxZDk4rHTxg78Mh8EVsDEY2UPh3wu7pvW9XfJGrYgqZ/image.png)\n\n\nThe user in this example, who has a small installation of ~2 kWp in solar panels, covers the period of domestic consumption between 9:00 in the morning and 18:00 in the afternoon. There is a period between 9:00 and 13:00 where he/she needs a little more energy in addition to the one produced by the installation and you would support consuming the network; between 13:00 and 18:00 more energy is generated than consumed, resulting in a surplus energy. These surpluses, due to the current legal limitations that exist in Spain that we will explore further on in the second part of the post, cannot be utilized by third parties (e.g. sold directly to a neighbor) and are not paid by the market. In other words, the energy market does not recognize the value of Distributed Energy Resources (DER) within the energy markets and electrical grid.\n\n## Pylon platform and self-consumers ##\n\nIt is clear that we have a problem and that it affects the self-consumers by excluding them from the operation of the current energy market – being connected to the same network. There is a lack of communication between these actors and the rest of the energy market players that prevents the optimization and utilization of these decentralized renewable generation facilities “DERs”. \n\nPylon Network platform came out of this need and has been designed to cover this gap.\n\nPylon Network is a tool that empowers self-consumers – the end user – and offers them access to the energy market. This platform transforms DER facilities into digital assets of the system, opening new exploitation opportunities, allowing them to obtain additional revenues by offering market flexibility services, such as demand control and network balancing.\n\n\n***RD 900/2015 is the document that regulates self-consumption in Spain. In the second part of the post we will explain its peculiarities, we will define the well-known “sun tax”, seeing who is affected and who is not, as well as its future development and we will talk about the prices and procedures required for a typical installation of self-consumption.\nSo, be patient until next week when you will have a good overview of all the aspects around self-consumption (in Spain). We hope that by then you will have all necessary information to start your trip on self-consumption.***\n\n##### Special thanks to co-author: Vicent Prats Feliu (El. Engineer) – http://pratsingenieria.com/ #####\n\n </div>\n\n\n\n### PYLON NETWORK. The revolution will not be centralized. ###\n#Peace #Love and #Renewables\n\n**Join Telegram:**\nEnglish: https://t.me/pylonnetworkofficialtelegram\nSpanish: https://t.me/pylonnetworkspanishchannel\n\n**More info:**\nPylon Network Web: https://pylon-network.org/\nPress releases: https://pylon-network.org/blog\nKlenergy Web: http://klenergy-tech.com/\nMail: [email protected]\n\n**Follow us:**\nFacebook Page: https://www.facebook.com/KlenergyTechOfficial/\nTwitter Profile: https://twitter.com/KlenergyTech\nLinkedIn Profile: https://www.linkedin.com/company/klenergy",
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      "parent_permlink": "may",
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      "title": "Summary of May for Pylon Network",
      "body": "![](https://cdn.steemitimages.com/DQmSxrKatrv5UzJfeuG8BD3He3hNA1Mt2PRnSvUSwoNCF5J/image.png)\n\n<div class=\"text-justify\">\n\nMay is over and in this post we are looking back to what we achieved, on a very busy month in terms of the project development.\nDuring May we also run our “Energy Wednesdays” informative segments, where we focused on various aspects of the energy markets, which we think are important insights regarding the operation of the energy sector and that we think everyone should know.\n\nThe following sections provide a summary of all highlights for the past month. \n\nEnjoy!\n\n\n**Project Development:**\n--------------------------------------------\n\n– The first [METRON installation in Madrid](https://pylon-network.org/pylon-network-installs-first-metron-energy-meter-madrid.html) in San Fernando public market.\n– Announcement of new [collaboration agreement for the integration](https://pylon-network.org/pylon-network-egeo-close-collaboration-agreement-development-certified-energy-meter.html) of Pylon Network’s blockchain code, with eGEO smart meters.\n– The public [release of METRON dApp](https://pylon-network.org/first-version-metron-dapp-ready-free-download.html) for Android and iOS\n– [Listing on QIEX exchange.](https://pylon-network.org/pylnt-listed-qiex-exchange.html) PYLNT paired with ETH and USDT.\n\n**“Energy Wednesdays” for May:**\n-------------------------------------------------\n– [How the price of electricity is affected by the so-called “energy mix”?](https://pylon-network.org/know-meant-energy-mix-determines-price-energy-explain-spanish-case-pylon-network.html)\n– [Choosing your electricity provider in the EU liberalized utility market – the Spanish case.](https://pylon-network.org/did-you-know-that-you-can-choose-your-electricity-provider.html)\n– [Looking into the Spanish energy market: an analysis of the stakeholders and their interactions.](https://pylon-network.org/actors-spanish-energy-system.html)\n\n**Other stories:**\n--------------------------\n– [Achieved milestones up-to-date and planning the next steps.](https://pylon-network.org/completed-milestones-date.html)\n– [Pylon Network’s confirmed events for June.](https://pylon-network.org/events-for-june.html)\n-----------------------------------------------------------------------------------------------------------------\n\nWith the closure of this intensive month we are getting ready for June, which as you read, will be a busy month as well.\nStay tuned to follow the developments of Pylon Network and the exciting news coming up!\n\n</div>\n\n**PYLON NETWORK. The revolution will not be centralized.**\n**#Peace #Love and #Renewables**\n\n**Join Telegram:**\nEnglish: https://t.me/pylonnetworkofficialtelegram\nSpanish: https://t.me/pylonnetworkspanishchannel\n\n**More info:**\nPylon Network Web: https://pylon-network.org/\nPress releases: https://pylon-network.org/blog \nKlenergy Web:  http://klenergy-tech.com/\nMail:  [email protected] \n\n**Follow us:**\nFacebook Page: https://www.facebook.com/KlenergyTechOfficial/\nTwitter Profile: https://twitter.com/KlenergyTech \nLinkedIn Profile: https://www.linkedin.com/company/klenergy",
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      "author": "kwabeedat",
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      "body": "just gave you an upvote. Thanks for sharing this\n\nplease check my [latest post](https://steemit.com/blockchain/@kwabeedat/the-road-to-employment-springrole-softcap-reached)",
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