Spanish energy tax threatens EU’s green hydrogen plans, industry warns

(EurActiv, 6 Oct 2021) As energy prices soar across Europe, the chairman of electricity giant Iberdrola warned of short-sighted measures in Spain that are threatening the expansion of renewable electricity needed for the production of green hydrogen.

Europe’s path towards net-zero emissions by 2050 will require large amounts of renewable electricity, including for the production of so-called green hydrogen made from water electrolysis.

Policymakers are looking at hydrogen to store energy and as a feedstock to decarbonise carbon-intensive industries like chemicals, steelmaking and heavy-duty transport.

But investments in green hydrogen are now on hold in Spain because of an exceptional tax imposed by the government in response to rising electricity prices, said Jose Galán, chairman of Spanish utility Iberdrola. 

Madrid announced plans on 14 September to claw back €3 billion from electricity companies which are accused of earning windfall profits from the surge in gas prices.

“Some countries imposing new charges on renewables due to the temporary situation of gas prices are seriously concerning investors and putting at risk future investment in renewables,” Galán warned.

Europe is already lagging behind on renewable energy deployment and regulatory certainty is crucial to attract investments, Galán said at the Renewable Hydrogen Summit on 29 September.

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EurActiv, 6 Oct 2021: Spanish energy tax threatens EU’s green hydrogen plans, industry warns

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