From the end of 2011, Mariano Rajoy's first government approved a series of legislative measures that significantly impacted the development of renewable energy in Spain. These restrictive policies responded, in part, to pressure from the energy lobby , as well as to the need to control the tariff deficit , which at the time exceeded €20.000 billion. However, with the influence of the European Union and the impetus of new initiatives, the future looks more promising for the sector.
Legislative measures on renewable energy
The Government's decisions regarding renewable energy were justified by pointing out two main reasons:
Economics
- There was a significant imbalance between the system's regulated revenues and costs, resulting from the rapid growth of technologies such as wind, solar photovoltaic and thermoelectric. This led to the need to control the tariff deficit, which at that time exceeded 20.000 billion euros.
Techniques
The rapid growth of renewable generation capacity created a scenario of excess power. This situation gave the Government room to stop new installations, thereby meeting European targets for reducing greenhouse gas emissions. At the same time, the aim was to improve the stability of the electricity grid and ensure that renewable energy commitments were respected.
Real Decreto-Ley 1 / 2012
One of the key moments in the slowdown of renewable energy deployment in Spain was the publication of Royal Decree-Law 1/2012 . This law suspended economic incentives for new renewable energy installations, which hampered the sector's growth for several years. In addition to suspending the pre-allocation of remuneration procedures, it eliminated the premiums and subsidies that had been crucial for the initial development of clean energy in the country.
This Royal Decree also paralysed regulated tariffs and registration procedures for new installations in the pre-allocation register, which directly affected the viability of future projects.
Other regulations that affected renewable energies
In addition to Royal Decree-Law 1/2012, several other measures had a considerable impact on the adoption and promotion of renewable energy, cogeneration and energy waste treatment in Spain. These include:
- 15 / 2012, of fiscal measures for energy sustainability.
- 15 / 2013, financed from the General State Budget.
- 24 / 2013, of the electrical sector.
Of particular note is Law 15/2012, which introduced a new, more restrictive tax framework for companies in the energy sector. This law also included a series of taxes related to electricity generation that particularly affected renewable energy.
The new European push: Next Generation EU funds
The landscape changed significantly with the implementation of Next Generation EU funds , which aim to accelerate the energy transition across Europe as part of the post-pandemic recovery. These funds, along with the European Green Deal and the 2030 Agenda, seek to reduce dependence on fossil fuels and boost renewable energy.
The aid package covers energy storage projects , self-consumption, energy communities, and building renovations. One of the most important programs is the Integrated National Energy and Climate Plan (PNIEC) , which aims to double Spain's installed renewable energy capacity by 2030.
Spain plans to allocate 37% of the funds received to the green transition , with a particular focus on expanding solar and wind energy. This will help meet the goal of having 74% of Spain's electricity generated from renewable sources by 2030.
The role of the European Union in the energy transition
The EU's commitment to combating climate change is crucial for the progress of renewable energy. Since the implementation of the European Green Deal, the EU has promoted policies that accelerate the use of clean technologies and boost research and development into new forms of energy generation.
Thanks to these efforts, the European Commission aims to eliminate all net greenhouse gas emissions by 2050. This involves investments in renewable energy projects, such as energy communities or initiatives related to electric mobility and building renovation, supported by Next Generation EU funds and REPowerEU, created in response to the energy crisis resulting from the war in Ukraine.
The future of renewable energy in Spain
In recent years, renewable energy auctions have become the Ministry of Industry, Energy and Tourism's main tool for promoting the installation of renewable capacity in our electricity grids. More recently, Spain has announced new auctions that aim to add an additional 3.000 MW of power, mainly in technologies such as wind and solar photovoltaic.
Despite restrictive measures that slowed the advance of clean energy during the first half of the last decade, the sector is experiencing a significant recovery. The elimination of the “sun tax” in 2018 was one of the first steps to democratize access to renewables, along with the promotion of self-consumption.
89% of the Spanish population declares itself interested in self-consumption, which makes this segment one of the keys to meeting future decarbonisation objectives. In addition, European funds ensure that both large and small companies will be able to access financing to carry out green projects.
In addition to meeting the immediate objectives of the PNIEC, Spain is expected to achieve carbon neutrality by 2050. These efforts will not only reduce greenhouse gas emissions, but will also contribute to job creation and sustainable economic growth.
Spain remains one of the nations with the greatest potential to lead the energy transition in Europe thanks to its abundance of natural resources such as sun and wind, combined with a strong political and social commitment to renewable energy.