Spain raises tax on renewables and other generators to 7%

SPAIN: Spain's parliament yesterday gave final approval to a law levying a 7% tax on all forms of electricity generation including wind power from 1 January.

The original draft set a 6% tax rate but the governing Popular Party (PP) added an additional 1% through a parliamentary amendment.

Another amendment ringfences receipts from CO2 auctions for meeting renewables support costs.

The legislation also includes taxes on the industrial use of natural gas, on the use of water for hydroelectric  production and on nuclear waste.

The measure will have a significant impact on the wind power sector which has already been hit by the moratorium on feed-in-tariffs for new wind capacity and a reduction in the 2020 target for installed capacity.

Wind power producers association AEE told Windpower Monthly the 7% tax will cost the sector €300 million in 2013.