Spain’s Council of Ministers has approved a package of measures to speed up the country’s energy transition, including scrapping the ‘sun tax’ that has seen major solar farm projects switch from Spain to Portugal where the tax regime has been views as less punishing.
Other measures are included in a wide-ranging decree to ensure Spain gets closer to complying with its renewable energy objectives.
A reduction in electricity prices will please householders and those debating the purchase of an electric vehicle will be supported by an expansion in charging points.
The fall in domestic electricity prices will be achieved by removing the Special Hydrocarbons Tax which accounts for 4% of domestic energy bills.
The raft of measures came from the Ministry for the Ecological Transition, under Minster Teresa Ribera and ends the ‘sun tax,' imposed by the previous PM, Mariano Rajoy.
The move by Spain encourages those installing domestic solar systems and community based systems, by removing bundles of red tape. Charges for the self-consumption of electricity will be erased and a Greenpeace estimate cites a figure of €1.7 billion that could be saved each year if the self-consumption sector is encouraged rather than taxed.
These moves allow Spain to leapfrog Portugal in the development and promotion of renewable energy systems and, with Portugal’s 2019 State Budget now being worked on, PM António Costa may have time to respond to Spain’s new rules which, as things stand, will encourage Spanish businesses to turn back from Portugal when siting new solar farms.
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See also: 'Spain installs solar power plant in Portugal - 'there's less red tape'
