Spain's competition watchdog blasts government plans to tax solar

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Just days after Spain’s National Energy Commission (CNE) criticized plans to limit small-scale photovoltaic generation in the country, a second powerful Spanish institution has openly sided with the photovoltaic sector in denouncing the proposed hurdles, which the industry sees as unnecessary, disproportionate and discriminatory against new small-scale PV projects for self-consumption.

On September 16, Spain’s National Competition Commission (CNC) published a new report on the country’s new draft electricity law in which it criticizes the government’s plan to penalize photovoltaic generation.

"By penalizing self-consumption, a specific technology is actually being penalized, which is electricity generation with photovoltaic solar panels," the CNC warned in its findings.

The competition body added that while "this technology presents lower production costs than others, the efficiency of the system is being harmed and clients are being prevented, especially clients of a larger size that utilize electrical energy as an input, from reducing their costs. Consequently this reduces the competitiveness of the Spanish economy."

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