The validation of Royal Decree-Law 8/2023 on urgent measures in the energy sector has brought, among other measures, the recovery of the Tax on the Value of Energy Production, which was suspended during 2023 and is applied to electricity producers. The reintroduction of the tax is being done gradually and will reach a total of 7% in the month of July.

According to experts consulted by Foro Industria y Energía, the recovery of this tax should not pose a brake on the competitiveness of the Spanish industry and energy sector, since it was already known that it would be reapplied. However, as Daniel Pérez, author of the book “The Renewable Superpower,” points out, “without this tax, prices could be 7% lower and, therefore, even more competitive for the industry.”

The expert believes that “on the one hand, the tax was already factored in, and therefore, PPA prices should not change in principle. But at the same time, if there had been the surprise that it didn’t, the industry would be more competitive because we would have energy that is 7% cheaper.”

El experto considera que “por una parte, el impuesto ya estaba descontado y, por tanto, los precios de los PPA en principio no deberían cambiar, pero, a la vez, si hubiera habido la sorpresa de que no, la industria sería más competitiva porque tendríamos una energía un 7 % más barata”.

In this line, electricity producers consulted byFIE agree that the recovery of the tax should not affect Spain’s projection as a renewable energy pole in Europe and its ability to attract an industry in search of efficient, affordable, and renewable energy. Fernando Samper García, director of wind and solar development at Forestalia, points out that “the energy production sector was already considering the possibility of the recovery of this tax, and we know that it has worked considering this circumstance so that it does not affect the market’s evolution significantly.”

The expert adds that “we are moving towards a model of green, integrated, and competitive energy that positions Spain as a benchmark in renewable energies. It is a medium and long-term commitment, with challenges lying more in strengthening networks and developing a favorable regulatory framework.”

For Albert Concepción, director of Foro Industria y Energía, the recovery of this tax does not necessarily influence Spain’s continued attractiveness for industry or data centers because it was a temporary measure. “Prices tend to decrease, and Spain continues to provide the most competitive PPAs in Europe.”