Spain plays a leading role in the deployment of a historic innovation self consumption electric. After 2022’s record breakingWhen photovoltaic self-consumption was established in the past period almost as much as in all history explosion subsided due to the softening of electricity prices and the delay in the distribution of subsidies. The government is now taking action to reignite solar panel excitement, taking particularly encouraging measures. construction of large self-consumption facilities in companies.
The executive took advantage of the ‘omnibus decree’ on emergency economic measures it approved last week to expand tax incentives for companies installing large self-consumption facilities on their premises and to facilitate the installation of self-generating solar power plants. They are easier to connect to the power grid, which has been one of the bottlenecks facing the expansion of solar installations.
More network capacity
The Ministry of Ecological Transition, led by Vice President Teresa Ribera, will allocate 10% of the power of all tenders providing access to both the transportation network and the electricity grid to self-consumption projects (high voltage Spanish Electricity Network) as well as in some cases distribution networks (those managed by groups such as Endesa, Iberdrola, Naturgy or EDP).
So far, with the new legal reform, together with the legislation approved during the worst period of the energy crisis, the Executive has allowed part of the tendered electricity to be allocated only to some grid connection competitions. This measure has been extended to all future auctions.. The government recognizes that the reform will enable: Promoting more self-consumption projects in companies than in homesIt was the second segment that most noticed the slowdown in distribution last year.
The aim is to promote these projects quickly; Therefore, the Government has decided to limit the viability of these projects. Favorable conditions for self-consumption of networks only for the next two yearsDuring this period, all connection capacity that is not tendered will be redistributed to any project, whether self-consumption or not, without restrictions.
Permissions to connect to the electricity grid in Spain In recent years, they have become a highly valuable asset due to the explosion of new renewable energy plants and self-consumption and the proliferation of large industrial projects with high light consumption. These permits attract so much attention that they have become an object of sale and a breeding ground for speculation by some.
In order to avoid saturation in some regions due to the concentration of new renewable installations and the proliferation of large industrial and technological projects, the government has initiated an urgent expansion of electricity networks and is preparing a completely new and comprehensive electricity planning for the coming period. years to meet new needs. In this context, allocating at least 10% of all network access auctions to self-consumption becomes an important tool to facilitate expansion, especially when it comes to self-consumption projects for companies and large industries.
tax incentives
The government has also decided to encourage self-consumption in companies through the implementation of tax incentives. The omnibus decree includes the extension for another year of the freedom to depreciate investments in renewable energy facilities for self-consumption and other types of renewable energy that replace fossil fuels in corporate tax. “The purpose of this measure is to encourage the replacement of fossil fuels with renewable energies.” It was produced domestically to contribute to increasing the competitiveness of Spanish companies, combating climate change and improving the country’s energy security,” emphasizes the Manager.
The opportunity to freely determine the depreciation rate of these investments expired on December 31, and the Management decided to extend this period and allow it to be applied to investments started or concluded during 2024. The maximum amount companies can deduct is 500,000 Euro investment and the tax incentive is conditional on the company maintaining employment (it must maintain the previous year’s average workforce size for two years).