Spain is taking a key step toward realizing its ambitious electric vehicle goals by making power cheaper at night, when vehicles would be charging. Recently Spain’s Ministry of Industry, Tourism, and Trade submitted to the National Commission of Energy a draft Royal Decree for a cheap night off-peak tariff. This rate would apply from midnight to 6 a.m. in winter, and 1-7 a.m. in summer.

If passed (which could happen after this summer), this tariff would be available to licensed businesses with demand up to 15 KV, and with parking facilities that could host vehicle charging stations…

By Alicia Carrasco, eMeter Director for EMEA Regulatory Affairs

The draft proposes the creation of a new type of business that could buy electricity at the cheaper rate, and that would be both a consumer and a retailer of energy. Such licensed companies would install charging points and authorized/approved measuring points. They would resell power to third parties for electric vehicle charging — and they could also consume it themselves at night.

Spain’s approach might work in other European countries that seek to encourage electric vehicles through incentives. In fact, it’s remarkably similar to a July 29 California PUC ruling which concluded that companies which sell electric vehicle charging services to the public will not be regulated as public utilities.

However, the Spanish measure will only succeed with the right communication infrastructure in place. This infrastructure must be able to tell how much power is consumed via charging facilities, versus power consumed by third parties — and (most importantly) when either type of consumption occurs.

In February, Spain’s government made an ambitious commitment to electric vehicles. The current target is to have 250,000 electric vehicles on the road in Spain by the end of 2014.

Spain has shown signs of willingness to move toward a smart grid system, and has devised very strict regulations and targets for smart meter rollouts. For instance, by December 2010, 30% of the meters installed by each Spanish power distributor must be smart meters.

At eMeter, we welcome Spain’s smart grid efforts. However, it’s possible that some of those targets might be delayed due to the amount of planning and time needed for implementation.