Renewable energy policy updates and permit extensions
The Council of Ministers approved a six-month extension to obtain permission for new renewable energy construction, extending the current window through December 31. This move follows a surge of permits granted to energy companies earlier in the year. The measure, aimed at supporting the sector, maintains current incentives such as the exemption from 80% of electricity tolls for electro-intensive users and a maximum price freeze for fuel sources, alongside adjustments to compensation parameters for cogeneration facilities for 2023-2025.
Across the national territory, renewable projects totalling about 43 gigawatts of capacity are in the process of securing building permits before July 25, or facing reduced access permissions and a need to re-register and restart administrative procedures. Most projects already completed an Environmental Impact Statement this year, though changes remain possible—such as burying power lines or relocating facilities—which may require new public consultations and environmental reviews.
The ministry for ecological transition noted that the concentration of projects within a short period creates pressure for both national and European manufacturers to meet equipment demand. This could raise reliance on imports and affect strategic autonomy. As a response, the term for obtaining building permits has been extended by six months for these projects. Regardless, projects are required to be completed within five years from their initial operation date to align with the green agenda.
Teresa Ribera, Vice President and Minister for Ecological Transition, began implementing a calendar during the pandemic that outlined the phases of renewable projects to curb speculation in the industry. The coronavirus summer and later energy crisis disrupted these deadlines and prompted adjustments to the staged process. The earliest changes started more than a year ago, providing an extra nine months to secure environmental permits in light of a surge of proposals and administration delays.
Regulatory redundancy and 2023 adjustments
Another significant step is the extension of the 80% discount on electricity charges for electro-intensive companies, now planned to roll into 2023 in the decree without altering the budget. The energy system experienced a substantial surplus in 2022, estimated at more than six billion euros. While gas prices have moderated recently, they remain above historical averages, continuing to affect electricity costs for electro-intensive industries. For domestic consumers, the electricity generation tax exemption remains in force through December 31, 2023. In addition, the value-added tax on electricity remains at 5%, and the special electricity tax stands at 0.5%, with no changes to these rates.
Electric vehicle initiatives
Beyond consumer incentives, authorities announced the potential reduction of personal income tax on electric vehicle purchases by 15%, up to a limit of 20,000 euros. The executive also aims to ease infrastructure development by streamlining the installation of charging points for high-power electric vehicles. Public charging stations with a power output exceeding 3 MW would require no administrative permit, while installations below that threshold would also benefit from simplified procedures. This policy aligns with requests from autonomous communities through the Electric Vehicle Charging Infrastructure Working Group and industry stakeholders.
In addition to these measures, the government emphasizes simplifying coordination across agencies to accelerate project timelines while safeguarding environmental standards. The approach focuses on maintaining momentum for renewable energy growth, supporting industrial competitiveness, and advancing the broader goals of the green transition without compromising safety or community engagement.