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Overview
Different programmes aim to grant aid to projects that use renewable energy sources in the heating and cooling sector. In particular, non-refundable subsidies are allocated to these types of projects. The described subsidies are administered by IDAE and the Autonomous Communities.
Besides, on the fiscal area, the legislation introduced allowances on the Real Estate Tax and on the Tax on Constructions, Installations and Works that incorporate solar system for thermal uses.
Last, the Building Code sets the obligation for certain buildings to have a minimum contribution of 70% from RE to cover domestic hot water demand.
The Spanish NECP calculates a trajectory of 31% share of RES in energy gross final consumption in the heating and cooling sector by 2030, compared to 18% in 2020. -
Summary of support schemes
- Subsidy (Grants for investment in RE electricity and thermal projects) – Allocation of non-refundable grants for thermal projects using RES
- Subsidy (Energy Rehabilitation of Buildings) - Subsidies for energy refurbishment actions in existing buildings, using RE sources, regardless of their use and the legal status of their owners
- Tax regulation mechanisms (Allowance on the Real Estate Tax for solar energy systems) - 50 percent rebate of the full amount of the tax for properties where a solar energy system for thermal or electrical use has been installed
- Tax regulation mechanisms (Allowance on the Tax on Constructions, Installations and Works) - Allowance of up to 95 percent in favour of constructions, installations or works in which systems for the thermal or electrical use of solar energy are incorporated
- RES-H building obligations (Minimum Renewable Energy contribution to cover heating of water in buildings) – Minimum quota of 70% from RES to cover total annual demand
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Competent authorities
- MITECO
- IDAE
- Autonomous Communities
- Municipalities
- MITMA
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Summary
Renewable energy installations in Spain must obtain certain administrative authorisations and fulfil technical requirements in order to be granted the right to produce electricity and operate in the market.
The very first step is to obtain the access and connection permits from the TSO or DSO, after which the developer will be allowed to connect to the grid and operate (after all other steps are completed). Once the project developer secured the lands, and Environmental Impact Assessment will be conducted, where different public and private stakeholders will be given the opportunity to get information and participate in the process. The authority will issue an Environmental Impact Declaration that may include requisites and conditions under which the project shall be conducted.
The project developer shall also apply for administrative authorisations. In particular, they will need a Prior Administrative Authorisation, an Administrative Authorisation for Construction, and local permits. In the cases where an easement or expropriation is needed, the project developer shall apply for a Declaration of Public Utility.
Based on the NECP´s projected capacities to be installed by 2030, three technologies are analysed in this section: wind onshore, ground mounted PV, and PV roof top (self-consumption). Installed capacities for electricity production from these sources are expected to grow considerably by 2030. Other technologies, such as hydropower, are also relevant for the Spanish energy transition. However, the projected growth is not as steep as with solar PV and wind onshore.
Rooftop PV installations for self-consumption, depending on their size and location, may benefit from a simplified and shorter procedure. For instance, units with an installed power up to 100 kW and connected to low-voltage, in principle should not require an Environmental Impact Assessment or a Declaration of Public Utility for example. -
Sequential order of process steps
1. Grid connection permit: Apply for the access and connection permits to the grid
2. Site selection: Negotiate land contracts
3. Administrative authorisation: Conduct an Environmental Impact Assessment (EIA) and obtain an Environmental Impact Declaration (EID). Apply for Prior Administrative Authorisation (PAA); Administrative Authorisation for Construction (AAC); and local permits. If an easement or expropriation is needed, the developer shall apply for a Declaration of Public Utility (DPU).
4. Electricity production license.
5. Corporate legal-fiscal.
Some steps can be conducted in parallel: for example, the EID, PAA, AAC, and DPU. -
Competent authorities
- MITECO
- Directorate General for Energy Policy and Mines
- Directorate-General for Environmental Quality and Assessment
- Industry and Energy Departments of the National Government Delegations
- Autonomous Communities
- Municipalities
- CNMC
- TSO
- DSOs
