Praise the sun • Chapter summary
Toward the end of 2018, the Spanish government published an ambitious plan to make its electricity sector entirely reliant on renewable energy sources by 2050, surpassing official EU targets that aim to source 20% of total energy in this way by 2020. In order to achieve this, the government has committed to installing at least 3,000MW of wind and solar power on an annual basis for the next decade and put in place a number of incentives for green initiatives. One example of this is the law passed in November 2018 to ban cars that are not emissions-free from driving in downtown Madrid.
As a result, Spain is now considered one of the European nations leading the transition to a green economy as it works to consolidate its position as a prime contender for big green economy companies to thrive. The advancement in legal terms, coupled with growth in the technology available, paints the picture of a promising future for the sector. In particular, the regions of Valencia and Galicia have become hubs for green companies, specifically for photovoltaic and wind energy, on account of their long hours of sunshine and strong winds. Testament to this is the success of companies including Elecnor, Acciona, Aldro Energy, STI Norland, and Ingeteam, which have gained international recognition for their projects in recent years.
When speaking to companies in the field, a common concern was the importance of installation and maintenance services offered to a client base that is, for the most part, based on trust rather than an established track record due to how new these companies tend to be. In such a new sector, the roles of confidence building and education are of fundamental importance for both the companies’ success and the sector’s future. In spite of recent developments and much success in the USD4-trillion sector, another much-discussed challenge is the stability provided by the administration. Perhaps the best example of this is the controversial sun tax, or Impuesta al Sol, introduced by Mariano Rajoy’s government in 2015 that penalized owners of self-consumption solar panels, taxing them for accessing the electricity grid, as well as generating and consuming energy. Although this infamous tax was later scrapped by socialist leader Pedro Sanchez, the effect remains: a distrust toward the government and the temporariness of its regulation that often hinders rather than helps the transition to a green economy. This criticism is all the more legitimate today, three months after inconclusive general elections that see the future of the Spanish government in uncertain terms.
However, various institutions are in place to deliberate on, and tackle, potential future challenges in the field. One such example is the Association of Renewable Energy Companies (APPA), a reference in the green economy sector whose primary objective is to represent the demands/wishes of companies in the field and lobby against the passing of laws like the sun tax that make companies less competitive on the international scale. According to Elecnor’s President, Jaime Real de Asúa, regulatory changes and political stability are what makes a country attractive for investment, so when these bases are covered, there is no doubt the economy will thrive. Ensuring that this is the case for Spain will serve to attract further foreign investment into the sector and consolidate the country’s position as a pioneer for the European transition to a green economy. ✖