The government has granted three additional years for renewable energy initiatives to take shape, allowing the launch of renewable parks. Once a construction permit is secured, the existing five-year process can extend to as long as eight years. About a thousand projects are in the pipeline, and officials aim to secure building permits by the end of January 2024, backed by a refreshed framework to bring these plans to life.
This window matters because if project developers miss the deadline, permits already issued would lapse, necessitating a full restart of the administrative procedures. In recent years, the Council of Ministers has approved several extensions. The most recent, in June, extended the permit timeline by six months for the start of construction of new renewable energy sources currently under review. A rush to obtain permits at the start of the year is anticipated by many companies.
In total, roughly a thousand parks awaiting construction represent about 68 gigawatts of capacity, with 80 percent being photovoltaic plants and 20 percent wind farms that have secured grid access permits since January 1, 2018. The government published new figures in June as part of a broader shift toward a renewal era. The concentration of so many projects in a short period risks straining national and European suppliers, potentially boosting imports and limiting strategic autonomy. To curb speculation, the government adjusted the processing times that were introduced in mid-2020.
The government also raised the VAT on electricity to 10 percent for all of 2024, while gas is taxed only for the first three months.
Consequently, the construction Administrative License period for projects has been extended by six months, bringing the total to 49 months. Promoters may also extend the Administrative Abuse Permit period from five years to a maximum of eight years. It will be sufficient to declare, in a binding manner, the timeframe in which the facility is expected to be operational. The maximum combined processing time for offshore wind farms and hydroelectric pumping is nine years.
This reform is intended to support orderly integration of new installations, clarify the path toward achieving the national clean energy targets for 2030, and deliver timely benefits to the broader economy amid a growing electrification trend. The Ministry of Ecological Transition explained this context in its statement [Source: Ministry of Ecological Transition].
Renewable auctions
Additionally, the government added non-economic award criteria with a maximum weight of 30 percent to align with the European Wind Energy Package. The aim is to increase European production for upcoming renewable energy auctions and reduce reliance on imports from third countries. An allocation of 10 percent of the capacity of network nodes dedicated to electricity transmission was also agreed to guarantee the evacuation of surpluses from self-consumption facilities [Source: Government decree].