The Spanish Wind Energy Cooperation expresses concerns over EU price-regulation measures and potential new taxes
The Spanish Wind Energy Cooperation aligns with the stance taken by the European Wind Energy Association, WindEurope, regarding the ongoing EU regulation aimed at capping energy prices. The wind sector is voicing worries that further regulatory actions could threaten renewable energy investments. In particular, there is anxiety that new taxes could be levied on the industry, jeopardizing a substantial number of projects.
WindEurope noted that the regulation was originally designed to prevent sub-marginal energy production across the EU. However, the measure, approved recently, does not stop national governments from imposing additional taxes and may lead to uncoordinated actions across different forms of energy generation.
In their view, some member states are already considering extra taxes as part of the EU’s emergency measures. These proposed charges would apply to total revenues of electricity producers rather than to profits, a shift that could slow investments in renewable energy.
In Spain, the association notes that the government’s policy steps over the past year appear to be in line with the new EU Regulation intended to manage energy prices. On one hand, the measures already adopted reduce the revenue of cross-border energy players operating in the market. On the other, the incentive amounts tied to the mechanism known as RECORE, which applies to facilities under the regulated fee regime, have been revised downward in light of current market prices and future projections.
Furthermore, the cap on gas prices used for electricity generation, introduced under the 2022 rule, has helped lower electricity market prices. In most hours since the Iberian exemption was approved, market prices stayed below the regulation’s suggested ceiling of 180 euros per megawatt-hour. This illustrates the regulatory adjustments already underway in Spain.
“Any additional tax would undermine a large share of renewable energy investments and slow down orders for wind projects,” industry representatives warn, emphasizing that the sector prefers measures that reduce input costs rather than add new charges.
The wind industry argues that the regulation should not incorporate new taxes or charges that do not directly support lowering costs. They contend that the regulation’s purpose and spirit do not justify macroeconomic or fiscal burdens that could dampen renewable energy progress.
In their assessment, implementing new taxes would skew market signals and hinder decision-making around renewable investments for affected operators. This could delay a sizable portion of planned wind capacity, delaying the benefits of lower electricity prices for consumers during a period when Europe needs accelerated deployment of renewables most. Industry observers expect strategic planning to pivot as investors reassess risk under the evolving framework.
Looking ahead, the Wind Energy Cooperation suggests that any intervention in the electricity market will require careful review of investment strategies by manufacturers and developers, who must understand new risk factors introduced by policy shifts. Spain, with its network of industrial centers spanning the wind value chain, remains a key hub for the industry’s future, containing multiple facilities that contribute to 100% of the wind supply chain within the country.
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Environment department contact: [redacted]