Policies in Spain

Energy installations in Spain must obtain certain administrative authorizations and fulfil technical requirements in order to be granted the right to produce electricity and operate in the electricity market. Law 24/2013, on the electricity sector, reflects the competences of the General Administration of the State in energy matters for projects with an installed power exceeding 50 MW or facilities (understanding as such the plant and its evacuation infrastructure) that exceed the territorial scope of an autonomous community. Otherwise, the competence is for the Autonomous Communities.

The initial step is to obtain the access and connection permits from the TSO or DSO, depending on the size of the installation and payment of the corresponding financial guarantee, thus the developer could be granted with permit to connect to the grid and operate once the different requirements and stages would be fulfilled. Secondly, 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(DIA)  that may include requisites and conditions under which the project shall be conducted.

The project developer shall also apply for several Administrative Authorizations. In particular, they will need a Prior Administrative Authorization (PPA), an Administrative Authorization for Construction (AAC), and local permits. In the cases where an easement or expropriation is needed, the project developer shall apply for a Declaration of Public Utility (DUP). Lastly, they also need an Exploitation Authorization

Last of all, 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. Also, simplified rules are in place for speed up the process in some regions such as Autonomous Community of Madrid.

In general, depending on the capacity of the generation plant, above approvals will be granted either by the Spanish government or by the Autonomous Communities.  Plants over an installed power exceeding 50 MW or facilities (understanding as such the plant and its evacuation infrastructure) that exceed the territorial scope of an autonomous community are under central government umbrella. Otherwise, the competence is for the Autonomous Communities.

1. Preliminary Steps. The Royal Decree Law 23/2020 requires to be clear about the location before requesting access and connection. - a) Search for Connection Capacity: REE WEB Platform - b) Search for viable land. It is recommended to consult the Environmental Zoning for renewable energies: Wind and Photovoltaic.
2. Grid connection permit. Request for access and connection as established in RD 1183/2020 to Red Eléctrica de España (REE).
3. Site selection: Negotiate land contracts.

4. Administrative authorizations: Conduct an Environmental Impact Assessment (EIA) and obtain an Environmental Impact Declaration (EID). Apply for Prior Administrative Authorization (PAA); Administrative Authorization for Construction (AAC); and local permits.  Lastly, if an easement or expropriation is needed, the developer shall apply for a Declaration of Public Utility (DPU) as well.

   In addition, depending on the project, other authorizations may be required in order to complete the documentation to be submitted such as Authorization for archaeological prospecting, submission of report and subsequent resolution; Aeronautical easement; Request for temporary occupation of livestock trails; Public Hydraulic Domain (DPH): Crossing of ravines by power lines or roads, among others. 

5. Obtain the electricity production license.

6. Corporate legal-fiscal issues to be covered, as needed.

   Last of all, some steps can be conducted in parallel and/or simplified depending on the size of the renewable energy installation.

   Additional information

   Royal Decree 23/2020 introduced measures to lessen administrative barriers aligned with the energy transition. 

• 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

Spain pledged ambitious renewable energy targets for 2030. In the electricity sector, renewable sources will account for 81% of the total generation and the goal is set to 48% of renewables over total gross final energy consumption by 2030. Spain has also pledged to have 19 GW of self-consumption and 22.5 GW of storage and the reduction of foreign energy dependence from 73% in 2019 to 50% in 2030.

The country is comprised of three levels of governance: central, regional (Autonomous Communities) and local (municipalities). There are multiple support schemes for RES-E technologies in place and other areas focus on supportive measures in the energy transition domain. Many programmes are regulated at the National level, however, Autonomous Communities and Municipalities also administrate funds and specific support schemes, such as tax exemptions or subsidies to cover for example 50% of the total costs of PV installations (for self-consumption).

Support schemes for activities related to energy transition are mainly available under the framework of the Spanish Recovery, Transformation, and Resilience Plan (PRTR)  and managed by The Ministry for Ecological Transition and the Demographic Challenge (MITECO) and the Institute for Diversification and Energy Savings (IDAE).  The main themes where financial assistance is published are: energy efficiency, renewable energy, mobility, hydrogen, water management, biodiversity, circular economy and just transition and demographic challenge. 

To facilitate the search for incentives, MITECO has created a search engine where a catalog of incentives for citizens and businesses (open and close calls) can be found using different filters such as the region, topic of action, costs covered, etc. The platform currently includes measures and grants provided related to NRRP and PERTEs (strategic sectoral government plans) and can be found at: PRTR grants calls.

Moreover, to cover all public grants, a National Inventory of subsidies and grants search engine was created, which allows users to National Inventory of subsidies and grants filter by several fields such as year of publication, area of application, field of action, region, funding instruments, specific calls for SMEs, etc. and covering national, regional, and local entities. Therefore, up to date links to application details, dates, topics, etc. can be succinctly gathered on this site: National System for the Publicity of Public Subsidies and Grants

Last of all,  research and innovation policies covering a broad number of topics including energy transition-related are managed by the Ministry of Science and Innovation. The State Investigation Agency (AEI) is responsible for financing, evaluating, awarding, and monitoring scientific and technical research activities. The Center for Technological and Industrial Development (CDTI) promotes innovation and technological development in Spanish companies.

• Support schemes for activities related to energy transition are mainly managed by the Institute for Diversification and Energy Savings (IDAE) under the framework of the Spanish Recovery, Transformation, and Resilience Plan (PRTR). Specific lines available at the moment (Feb/25) for:

  - Canary and Balearic Islands (circa 500 m Є) related to sustainable energy strategies open to June 2026. See link: Energy Balearic and Canary Island | Subsides

  - Program (MOVES) renewed for the third call (1.550 mЄ) to finance part of the cost of acquiring electric vehicles and the installation of electric vehicle charging infrastructure, among others. Recently closed but, periodically open new calls. Refer to: IDAE support schemes

  - Pilot energy community pilot projects, 5th and 6th call closed. This program aims to support financially the creation of Energy Communities. Recently closed but, periodically open new calls. Refer to See link: CE IMPLEMENTA

  - BIOGAS Prefeasibility study program financial grants focus on biogas projects for thermal and/or electrical uses. See link: Biogas feasibility grants

• Subsidies for the promotion of collective self-consumption facilities with or without electric storage with renewable energy sources, thermal renewable energy facilities and actions for zero-emission mobility.
• Subsidy (Grants for investment in RE electricity and thermal projects) - Allocation of non-refundable grants for electricity projects using RES are regularly open under different schemes and Administration levels.
• Tenders / Auctions: Economic Regime for Renewable Energies as per RD 960/2000 and specific terms added in the different calls periodically open  – Allocation of a sliding feed-in premium.
• Net-Metering & Net-Billing - Self-consumption projects with surplus subject to compensation can benefit from a simplified compensation mechanism.
• 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) - Rebate 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 used to be available, depending on Autonomous Community and Location.
• RES-E building obligation (Minimum generation quota from RES in non-residential buildings) – Buildings larger than 3,000 m2 shall install a RE generation system (between 30 kW and 100 kW).

• Ministry for the Ecological Transition and the Demographic Challenge (MITECO)
• Institute for the Diversification and Saving of Energy (IDAE)
• Ministry of Development (MITMA)
• OMI-Polo Español (OMIE)
• National Commission for Markets and Competitivity (CNMC)
• Directorate General for Energy Policy and Mines
• Autonomous Communities
• Municipalities

The MOVES I, II and III Programs are supporting policies available in Spain to allocate subsidies for efficient and sustainable mobility, such as the purchase of EVs in different calls launched by IDAE in the last years but also to provide aid to RES-T infrastructure, for instance, for the implementation of EV charging infrastructure and stations. Although the latest program, MOVES III, is already closed it is expected to be renewed.

The regulatory bases for the MOVES Programs were established by RD 266/2021, which approved the direct granting for the implementation of incentive programs related to electric mobility  within the framework of the European Recovery, Transformation and Resilience Plan. These bases have been subsequently modified by RD 406/2023 and RD 821/2023.

The latest call, MOVES III, was initially endowed with a budget of 400 million euros, and subsequently increased to 1,200 million, of which, as of June 28, 2024, a total of 1,107.7 million have already been transferred to the Autonomous Communities, which are responsible for their final distribution. These aids were designed for the acquisition of electric vehicles and fuel cell vehicles. This aid is incompatible with other subsidies or aid that may be granted for the same purpose, from any national, European Union or international administration or public or private entity.

The tax rates of the Special Tax on Certain Means of Transport are based on the CO2 emissions of the vehicle. Similarly, environmental elements are considered for the granting of allowances in the Mechanical Traction Vehicles Tax (the fuel used and the type of engine). Apart from that, Spain has in place a quota system for the sale and consumption of biofuels.

Royal Decree 376/2022 establishes mandatory minimum targets for the sale or consumption of biofuels for the years 2025 and 2026 of 11.5 percent and 12 percent, in terms of energy content. For advanced biofuels, the minimum targets are: 1 per cent in 2025, 1.2 per cent in 2026 and 3.5 per cent in 2030. Lastly,  Order TED/728/2024 has been approved, which develops the mechanism for the promotion of biofuels and other renewable fuels for transport purposes which includes the aviation and shipping sectors, as well as biogas, hydrogen and other renewable fuels of non-biological origin and, included in the calculation to meet the NECP 2023 - 2030 targets for this sector. 

• Subsidies for the procurement of plug-in and fuel cell EVs are periodically published.
• Tax regulation mechanism (Tax rates and allowances adjusted by environmental elements) – Certain tax rates and allowances vary according to the CO2 emissions, the type of fuel and the vehicle´s engine.
• Biofuel quota (Promotion of Biofuels) – A minimum percentage of biofuels sales and consumptions as a percentage of total petrol or diesel sold or consumed in the transport sector is set each every year.
• Support of RES-T infrastructure – charging for e-vehicles (Programmes MOVES II and III) – The Programmes also allocate subsidies for the implementation of EV charging stations and associated infrastructure.

• Ministry for the Ecological Transition and the Demographic Challenge (MITECO)
• Institute for the Diversification and Saving of Energy (IDAE)
• Autonomous Communities