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Spain's Renewable Energy Incentives

Spain implemented an incentive scheme for wind, solar energy, and waste incineration, making it a major market for green energy investments valued at €13 billion. The scheme included grants, tax incentives, and a feed-in tariff for renewable energy plant owners. However, between 2010 and 2014, regulatory changes reduced solar power subsidies and imposed a 7% tax on electricity production, affecting the returns for renewable investors.

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7 views1 page

Spain's Renewable Energy Incentives

Spain implemented an incentive scheme for wind, solar energy, and waste incineration, making it a major market for green energy investments valued at €13 billion. The scheme included grants, tax incentives, and a feed-in tariff for renewable energy plant owners. However, between 2010 and 2014, regulatory changes reduced solar power subsidies and imposed a 7% tax on electricity production, affecting the returns for renewable investors.

Uploaded by

getanehayelign486
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd

• Spain: 1

o Spain introduced an incentive scheme for the generation of wind and solar
energy and waste incineration (Spanish Promotion Plan for Renewable Energy,
originally promulgated in 2000 and revised in 2005) which provided for grants,
tax incentives, soft loans, and loan guarantees;
o This incentive scheme made Spain one of the largest markets for investments in
“green energy” (estimated value of € 13 billion in renewable energy assets);
o One incentive was the feed-in tariff, which guaranteed owners of renewable
energy plants (in particular solar plants) to sell electricity at a higher rate for the
first 25 years and at a reduced rate for the plant’s remaining life time;
Between 2010 and 2014, Spain enacted several regulatory changes that
effectively eliminated certain solar power subsidies, imposed a 7% tax on
electricity production, and ultimately imposed a system where the “reasonable
rate of return” for renewables investors hinged on the standard operating costs
of a hypothetical “efficient” solar plant.

1
Partially based on Charles A Patrizia , Joseph R Profaizer , Igor V Timofeyev and Samuel W Cooper, “The Guide
to Energy Arbitrations - Second Edition, Investment Disputes Involving the Renewable Energy Industry Under
the Energy Charter Treaty” (5 June 2017) available at
[Link]
industry-under-the-energy-charter-treaty

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