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Modes of Action

Modes of Action

While maintaining the inherent features of TPF described above (technical/financial definition of the project, purchase of equipment, recouping the investment from savings, final transfer to industrialist), different contractual forms may be used to implement it, these are:

Loan of equipment:
A contract for the loan of equipment is established between the customer and the IDAE, whereby the IDAE, as the owner of the equipment, grants the customer the right to use it for a fixed or variable length period. During this time the user is obliged to pay the IDAE a series of periodic instalments depending on the energy saving obtained or the energy produced by the new equipment.
This mode is normally applied when drawing up projects whose aim is the implementation of equipment and installations in industry and in the services sector, which result in energy savings or energy replacement. It is also applicable to energy generating technology projects (electricity or heat), provided that the energy produced is wholly or partly consumed by the user, in which case the unconsumed surplus is sold directly to a third party.
This is the form most commonly used by the IDAE and covers almost 50% of its investment projects.
The size of investments that can be made using this mechanism are normally set in the range of 300,000 to 3,000,000 euros and the period over which the IDAE recoups its investment is normally 4 to 8 years.
 

Purchasing on deferred payment terms:
This formula is available as an alternative to the preceding one in which use of the equipment is granted. It is used in cases where the user, for reasons not inherent to the project, asks for this formula to be used (this is often because a purchase invoice for the equipment is required in order to obtain a subsidy).
 

Direct operation by the IDAE:
In this formula the IDAE retains ownership of the equipment and invoices the user directly for the energy produced.
This formula can be used in the case of projects using renewables to generate electricity: mini-hydroelectric plants, small scale windfarms, biomass power stations, and photovoltaic plants.
The legal formula used in these cases normally involves the signing of two contracts: one between the IDAE and the electricity company and another between the IDAE and the end user of the equipment. In order to allow the end user to have a share of the energy benefits of the project, the parties sign an operation and maintenance contract for the equipment, under which the user receives a share of the income from the sale of the energy produced.






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Government of SpainMinistry of Industry, Energy and Tourism