124 Alevgul H. Sorman et al.
any RES generating electricity for self- consumption and being connected to the
national grid, which will be subjected to access and consumption fee charges.
The Spanish government claims that this regulation has been designed in order
to ensure the technical and economic sustainability of the national grid.
However, public opinion labelled the initiative as a ‘sun tax’ since consumers
with their own PV systems are to be taxed for the electricity they generate and
consume if they are connected to the grid. This regulation in essence has not
considered the external benefits that these consumers generate to the electricity
system while also complying with meeting the renewables and climate objectives. Moreover, failure to comply with the law or non- registration as a selfconsumer are subjected to a financial penalty between just over €6 million and
€60 million, deterring small actors (IEA, 2015).
The Spanish legal framework had direct implications for the evolution of
renewable energy’s installed capacity and electricity generation. As a result of
national regulation, when the FIT–FIP- oriented SR was in force, capacity grew
from 17 GW in 2004 to almost 40 GW in 2013, and electricity generation
increased from 47 TWh in 2004 to 111 TWh in 2013. However, the last energy
reform (including the subsequent cutbacks in the incentive scheme from 2012
onwards) led to no new renewable energy capacity in 2014 and 2015, and a drop
in the electricity generated by the SR. By technology, wind and solar accounted
for 74% of total SR capacity in 2015 (57% wind, 12% solar PV, and 6% solar
thermal) and 62% of electricity generation (49% wind, 8% solar PV, and 5%
solar thermal).
The costs of public retribution to RES and co- generation in Spain rose
steeply from 2008 to 2013 (Figure 8.1). This coincided with the period of
maximum investment in renewable energy capacity and dropped after the suppression of the FIT–FIP scheme.
The regulatory framework for RE in the transport sector sets a biofuel quota
of 4.1% of the total amount sold from 2013 onwards (BOE, 2013c: Article 41).
This target represents a reduction from the original 6.5%, thus endangering the
achievement of the 10% goal by 2020 (risk) but at the same time incurs some
additional benefits (e.g. reduces the biofuels competing for food production or
avoids investment in alternative energy sources which do not generate high
returns on the energy invested, having low energy return on investment (EROI)
(Cleveland et al., 2016).
Regarding the heating and cooling sector, European directives have not been
properly transposed into the Spanish legal framework, thereby limiting the
incentives to low- carbon sources for heating and cooling (H&C). The only policies aimed at RES- H&C include the building sector, where the Regulation for
Thermal Installations in Buildings encourages the use of RES (biomass, geothermal, and solar) with energy efficiency purposes, but with no concrete targets
(BOE, 2007b; updated in BOE, 2013a).
Finally, concerning the energy efficiency target, the Spanish government forwarded the National Energy Efficiency Action Plan (NEEAP) 2014–2020 to the
European Commission. This strategic plan contains targets in line with the
any RES generating electricity for self- consumption and being connected to the
national grid, which will be subjected to access and consumption fee charges.
The Spanish government claims that this regulation has been designed in order
to ensure the technical and economic sustainability of the national grid.
However, public opinion labelled the initiative as a ‘sun tax’ since consumers
with their own PV systems are to be taxed for the electricity they generate and
consume if they are connected to the grid. This regulation in essence has not
considered the external benefits that these consumers generate to the electricity
system while also complying with meeting the renewables and climate objectives. Moreover, failure to comply with the law or non- registration as a selfconsumer are subjected to a financial penalty between just over €6 million and
€60 million, deterring small actors (IEA, 2015).
The Spanish legal framework had direct implications for the evolution of
renewable energy’s installed capacity and electricity generation. As a result of
national regulation, when the FIT–FIP- oriented SR was in force, capacity grew
from 17 GW in 2004 to almost 40 GW in 2013, and electricity generation
increased from 47 TWh in 2004 to 111 TWh in 2013. However, the last energy
reform (including the subsequent cutbacks in the incentive scheme from 2012
onwards) led to no new renewable energy capacity in 2014 and 2015, and a drop
in the electricity generated by the SR. By technology, wind and solar accounted
for 74% of total SR capacity in 2015 (57% wind, 12% solar PV, and 6% solar
thermal) and 62% of electricity generation (49% wind, 8% solar PV, and 5%
solar thermal).
The costs of public retribution to RES and co- generation in Spain rose
steeply from 2008 to 2013 (Figure 8.1). This coincided with the period of
maximum investment in renewable energy capacity and dropped after the suppression of the FIT–FIP scheme.
The regulatory framework for RE in the transport sector sets a biofuel quota
of 4.1% of the total amount sold from 2013 onwards (BOE, 2013c: Article 41).
This target represents a reduction from the original 6.5%, thus endangering the
achievement of the 10% goal by 2020 (risk) but at the same time incurs some
additional benefits (e.g. reduces the biofuels competing for food production or
avoids investment in alternative energy sources which do not generate high
returns on the energy invested, having low energy return on investment (EROI)
(Cleveland et al., 2016).
Regarding the heating and cooling sector, European directives have not been
properly transposed into the Spanish legal framework, thereby limiting the
incentives to low- carbon sources for heating and cooling (H&C). The only policies aimed at RES- H&C include the building sector, where the Regulation for
Thermal Installations in Buildings encourages the use of RES (biomass, geothermal, and solar) with energy efficiency purposes, but with no concrete targets
(BOE, 2007b; updated in BOE, 2013a).
Finally, concerning the energy efficiency target, the Spanish government forwarded the National Energy Efficiency Action Plan (NEEAP) 2014–2020 to the
European Commission. This strategic plan contains targets in line with the