Changes to renewable energies in Spain

 Return of the electricity generation tax in 2024

The electricity generation tax (IVPEE - Impuesto sobre el Valor de la Producción de la Energía Eléctrica) had been suspended since the third quarter of 2021, i.e. the tax rate had been temporarily reduced to 0%. This suspension has now been lifted by RDL 8/2023, meaning that from January 1, 2024, the production of electrical energy will once again be taxed at 7%. There is a special feature in the tax base for the first two quarters. For the 2024 tax year, the IVPEE tax base consists of the total amount to which the taxpayer is entitled for the generation and feed-in of electricity into the electricity grid, less half of the remuneration for the electricity fed into the grid in the first calendar quarter (January-March) and less a quarter of the remuneration for the electricity fed into the grid in the second calendar quarter (April-June).
 

Bono social

The bono social, i.e. the possibility for low-income citizens to receive economic aid for the consumption of electricity and gas, will initially be extended until 30.06.2024. However, the levies that producers of electrical energy have to pay have been reduced from €1.465428/MWh to €0.238676/MWh. It remains to be seen whether the bono social will be completely abolished after 30.06.2024

 
Claw back

The claw-back procedure, with which the so-called windfall profits of renewable energy producers (and nuclear) were skimmed off, expired on 31.12.2023 without the legislator deeming an extension necessary. The claw-back procedure was applied as soon as the pool price exceeded €67/MWh.

Administrative construction permit

And finally, the Spanish legislator has given numerous project developers an Epiphany gift. The deadline for granting the so-called administrative construction permit (autorización administrativa de construcción -AAC) was extended from 37 to 49 months for all project rights that were granted the feed-in point after 31.12.2017 but before 27.12.2023 (always in compliance with CFT/DE/167/22-CNMC-conflicto de Acceso).

1. This means that those installations that received the feed-in point before 26.6.2020 have been granted an extension until 26.7.2024.
2. For project rights that were allocated the feed-in point after 25.6.2020, the 49-month time limit applies from the date of allocation of the point.

Final operating permit

The same applies to the final operating permit (autorización de explotación definitiva), where the period has been extended from 5 to 8 years, whereby the start of the period is to be calculated as for the AAC.

1. However - and this is very important - this extension must be applied for 3 months after this law comes into force or after the AAC has been issued. This is a cut-off period, i.e. if this is missed, the original 5 years apply.
   
2. When applying, the competent authority must also be informed of the six-month period in which the operating permit (autorización administrativa de explotación) is expected. It must be stated that prior commissioning is expressly waived and the competent authority must also be informed of this date. This is intended to ensure orderly commissioning.