“Only one energy transition rather than a model where society and the economy reduce the need for energy.” This line appears in the annual audit report from the Sindicatura de Comptes, the Generalitat’s general account audit, and was presented to the Cortes and the Consell on Friday as part of the 2021 oversight.
In the document, which scrutinizes the budget and financial performance of Valencia’s regional administration, Vincent Cucarella voices concern about the large sums of public money directed toward the energy transition. He cites scientific warnings about the impossibility of fully substituting fossil fuels with renewable energy, a point described as the shift to renewable sources without abandoning the existing energy scale.
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In essence, the report suggests that the energy produced from fossil fuels, a key energy source in recent policy periods, cannot be wholly replaced by renewable energy. It urges preparation for scenarios with lower net energy, rather than simply pushing for reduced consumption or a faster change in the generation mix.
Among the ombudsman’s cautions, the report notes that the EU, the Spanish government, and the Generalitat allocate a growing share of budgets to energy policies whose effectiveness is debated. It warns there is a risk of creating speculative bubbles by diverting public funds, with consequences that could undermine environmental goals and the energy transition itself.
Therefore, the report highlights risks related to hydrogen, electric vehicles, or mass tourism—ventures that require large financial resources and rely on fossil fuels—risks that could accelerate the current systemic crisis and push the planet beyond biophysical limits. It also notes government actions that seem more focused on restoring preexisting levels of activity than on securing long-term public debt stability, which could threaten the continuity of essential public services in the future.
deficit increase
The 2021 General Account Audit Report shows an uptick in the deficit compared with the previous year, reaching 2.153 billion euros after gaps of 1.830 billion. This result reflects added state funding tied to the pandemic and stands in contrast to 2020, though it remains better than 2019, when deficits reached 2.6 billion.
The supervisory body notes that the exceptional conditions of 2020 and 2021 create a risk that the deficit could rise again once additional unconditional financing ends. It also emphasizes that balancing with the existing regional financing framework will be challenging.
It explains that the deficit is not primarily caused by spending above regional averages but by lower incomes, with regional financing playing a notable role. Extraordinary government financing schemes—established since 2010—have allowed the Generalitat to keep operating despite insufficient funding and restricted access to capital markets.
Yet the report shows substantial differences between ordinary and extraordinary regional funding. Self-financing comes without offsetting returns, while state mechanisms contribute to higher future debt levels underfunding.”