Spanish Congress approves new energy law

The Spanish Congress has officially passed the new energy law, which introduces a taxation of 7% on every income generated by selling electricity. This includes producers of renewable energy, who will have to pay the new tax on top of their income from FITs.

The law, which had been modified by the Spanish Senate within the last couple of weeks, was approved by the Congress without any changes. After the publication in the official register it will come into effect on January 1, 2013.

The new law is one part of Spain’s reform of the national energy sector. José Manuel Soria, Minister for Industry and Energy, expressed his intention to finalize the remaining reforms within the next six months.

As he said in an interview with local media, there shall be no more retroactive changes for FITs. But he said payments for all FITs are still too high. To solve that "imbalance" Soria is said to be looking to initiate new conversations with the industry.

One of the most important tasks for the solar industry in the next year will be a solution for the self-consumption of renewable energy in Spain, which still is not possible for PV systems under 100 kW.