128 Alevgul H. Sorman et al.
Consequential risks and the energy transition panorama
As a result of the political panorama and regulatory shifts, several consequential
risks have been observed grounded on the archival research on regulatory
changes and stakeholders’ interviews.
Foremost, it has been underlined that gender representation has been a
reoccurring debate in Spain, especially relevant within the energy sector
which has the lowest percentage of women with executive positions (Pena,
2016). This has come about in terms of negative consequences including a
gender- plural vision in decision- making mechanisms in building low- carbon
energy transition pathways. The gender under- representation of our stakeholder interviews and survey results, within the scope of this research, have
also indicated a representation of the snapshot of reality. The peak of the
debate, and hence an imminent consequential risk of a future decarbonisation
pathway, has also been observed in the 14-strong all- male panel of experts
that have been selected in the design of the Climate Change and Energy
Transition Law of Spain.
Regarding regulatory changes, stakeholder interviews have helped to identify
numerous major consequential risks. The Royal Decree of 2013 implemented by
the state foresaw retroactive cuts of RES subsidies in terms of protective measures so as not to increase the aforementioned tariff deficit. These cuts accounted
for 8.4 GW or 37% of the cumulative investment, around €1.7 billion in subsidies for the sector (Rincón, 2016). The renewable energy sector, being stripped
of all subsidies, faced a major consequence of the Spanish state breaking its
promise to maintain incentives for 20 years.
Royal Decree 900/2015 (BOE, 2015a) resulted in the taxation of selfconsumption for PV installations. Under this decree, Type 1 modality of prosumers indicates that if solar panel installations of less than 100 kW generate
excess electricity, then that excess amount has to be donated to the grid and no
remuneration is given. PV prosumers exceeding 100 kW (Type 2), regardless of
whether they are using the grid or not at that moment of time, are subject to
two types of taxes. The changes in the regulatory system oblige a selfconsumption PV owner to pay a charge for the whole power (in terms of kW
capacity) installed (the power contracted through the electricity company plus
the power from the personal PV installation) as well as a (second) ‘sun tax’ for
the electricity generated for self- consumption from the personal PV installation
(applied to installations larger than 10 kW) (Tsagas, 2015).
Evidently, this regulatory change, rather than encouraging the participation
of small actors and consumers that would promote decentralisation as a means
of achieving energy and climate action led by community- owned, renewable
energy systems, has resulted in the contrary (Angel, 2016), penalising selfconsumption and generation tremendously. Not only does this portray an unfeasible (both economically and socially) option for households, but it may also
result in consequential risks for businesses: industries are hindered in PV installation, affecting the overall competitiveness of an RES transition within the
Consequential risks and the energy transition panorama
As a result of the political panorama and regulatory shifts, several consequential
risks have been observed grounded on the archival research on regulatory
changes and stakeholders’ interviews.
Foremost, it has been underlined that gender representation has been a
reoccurring debate in Spain, especially relevant within the energy sector
which has the lowest percentage of women with executive positions (Pena,
2016). This has come about in terms of negative consequences including a
gender- plural vision in decision- making mechanisms in building low- carbon
energy transition pathways. The gender under- representation of our stakeholder interviews and survey results, within the scope of this research, have
also indicated a representation of the snapshot of reality. The peak of the
debate, and hence an imminent consequential risk of a future decarbonisation
pathway, has also been observed in the 14-strong all- male panel of experts
that have been selected in the design of the Climate Change and Energy
Transition Law of Spain.
Regarding regulatory changes, stakeholder interviews have helped to identify
numerous major consequential risks. The Royal Decree of 2013 implemented by
the state foresaw retroactive cuts of RES subsidies in terms of protective measures so as not to increase the aforementioned tariff deficit. These cuts accounted
for 8.4 GW or 37% of the cumulative investment, around €1.7 billion in subsidies for the sector (Rincón, 2016). The renewable energy sector, being stripped
of all subsidies, faced a major consequence of the Spanish state breaking its
promise to maintain incentives for 20 years.
Royal Decree 900/2015 (BOE, 2015a) resulted in the taxation of selfconsumption for PV installations. Under this decree, Type 1 modality of prosumers indicates that if solar panel installations of less than 100 kW generate
excess electricity, then that excess amount has to be donated to the grid and no
remuneration is given. PV prosumers exceeding 100 kW (Type 2), regardless of
whether they are using the grid or not at that moment of time, are subject to
two types of taxes. The changes in the regulatory system oblige a selfconsumption PV owner to pay a charge for the whole power (in terms of kW
capacity) installed (the power contracted through the electricity company plus
the power from the personal PV installation) as well as a (second) ‘sun tax’ for
the electricity generated for self- consumption from the personal PV installation
(applied to installations larger than 10 kW) (Tsagas, 2015).
Evidently, this regulatory change, rather than encouraging the participation
of small actors and consumers that would promote decentralisation as a means
of achieving energy and climate action led by community- owned, renewable
energy systems, has resulted in the contrary (Angel, 2016), penalising selfconsumption and generation tremendously. Not only does this portray an unfeasible (both economically and socially) option for households, but it may also
result in consequential risks for businesses: industries are hindered in PV installation, affecting the overall competitiveness of an RES transition within the