The warning is clear: the lack of fiscal and regulatory signals is conditioning capital allocation decisions in Spain"s renewable energy sector.
This was the message delivered by Álvaro Pérez de Lema, CEO of Saeta Yield (part of Masdar Group), during Future Energy Summit (FES) Iberia 2026, where he called for a structural redefinition of the country"s energy framework.
"As long-term investors, what we need is visibility of the Government"s plan, sound energy planning and robust regulation," the executive said, making clear that the debate is no longer limited to installed capacity targets, but to the quality and stability of the regulatory environment.
The first critical issue is the tax burden on electricity, precisely the energy vector expected to lead to decarbonisation.
"I believe the power sector, which is the only energy vector that can truly decarbonise, is facing an excessively high tax burden.
Consumers are paying more than one-third of the final price in taxes or similar charges," he stated.
If Spain aims to electrify industry, transport and residential consumption, the fiscal framework should be aligned with that strategic objective, he argued. https://youtu.be/_G9kRTY2oU4
The second pillar is system flexibility, where energy storage is emerging as a necessary condition to continue expanding renewable capacity.
"Today, the system appears to have reached its maximum from a supply perspective.
If demand does not grow, or we do not introduce flexibility mechanisms in the grid mainly storage and greater grid investment then I believe we will not be able to move forward on the supply and generation side," he warned.
In this context, Saeta Yield is developing a 92 MW battery energy storage system (BESS), which was applied for funding last year under the EU"s European Regional Development Fund (FEDER).
"Fortunately, we applied for the subsidy round last year, and the idea is to complete the permitting process this year and commission it next year," Pérez de Lema explained.
However, the viability of such projects largely depends on public support.
He warned that energy storage could face disorderly market dynamics similar to those experienced in Spain"s solar PV segment if clear long-term rules are not established.
"Without the FEDER subsidy, it is very difficult to move a project forward.
There is not enough visibility, either in energy planning or regulation, to enable more large-scale investment," the executive said.
At the same time, Pérez de Lema underlined the need to review Spain"s National Energy and Climate Plan (PNIEC Plan Nacional Integrado de Energía y Clima), arguing that it has become outdated in light of the renewable sector"s current reality and no longer functions as a reliable long-term benchmark.
In his view, Spain must redefine its energy roadmap through a broad consensus to provide market stability and predictability.
"I believe we need to reassess where we stand, define a new energy plan and make it possible through a certain degree of consensus among stakeholders.
Energy is often used as a political weapon, but there is room for all of us in this sector, and we are all necessary," he said.
The lack of regulatory updates is compounded by administrative obstacles.
Regarding project permitting, the CEO was categorical: "It is a genuine ordeal, a real ordeal.
"There are technologies that can more easily find alternatives for construction, but others cannot.
Technologies such as wind power or hydropower require a different type of permitting process," he added.
The broader context, he noted, signals a new phase in the energy transition.
"Over the past five years, we have lived through a relatively straightforward decarbonisation phase, because it involved replacing one technology with a competitive alternative.
But if we want to decarbonise night-time supply, if we want to decarbonise firm capacity, this will not come free of charge," he pointed out.
"Either we establish long-term regulatory frameworks that provide visibility to make investment decisions, or it becomes very difficult," added the CEO of Saeta Yield.
The message to policymakers is clear: without fiscal reform, an updated PNIEC, stable rules for energy storage and simplified administrative procedures, Spain"s energy transition will advance below its full potential.
"In the end, this is about diversifying the generation mix and making the right investments so that we can reindustrialise the country.
In my view, we have a very strong opportunity, he concluded.