Spain: Employers’ obligation to improve energy efficiency

This law is aimed to assist the transition to climate neutral economy in Spain. The law contains numerous fiscal measures to incentivise companies and other private organizations to adopt renewable energy and energy efficient technologies and to increase and accelerate the integration of renewable energies into the Spanish economy.

The measures include:

• a tax exemption for the production of electrical energy for a period of six months (coinciding with the months of highest demand and highest prices in the wholesale electricity markets (winter period);
• a tax exemption for the use of energy products aimed to produce electricity in electrical power stations or combined cycle power stattions. This exemption must have an effect on electricity price for final consumers.
• a tax exemption for self-consumed energy of renewable origin, co-generation or waste.

Regarding the latter, the government approved the Royal Decree 244/2019 on 5 April 2019, which establishes the conditions for self-consumed energy, thus completing the regulation of Royal Decree 15/2018.