Royal Decree-Law 7/2026 is essential to minimise the impact of the energy crisis on households and businesses.
The reform package will help advance the energy transition and encourage the electrification of the economy.
Madrid, 23 March 2026.- Fundación Renovables calls on the political parties represented in Spain’s Congress of Deputies to set aside political tactics and join forces to ratify the reforms designed to alleviate the economic consequences of the war in Iran.
This is the time for parliamentary groups to reach the necessary consensus to soften the escalation of energy prices, which is already affecting the lives of households and businesses across the country. Although not perfect, the package of reforms contains numerous measures that will protect vulnerable households, curb inflation and strengthen energy sovereignty through renewables and electrification.
The ratification of Royal Decree 7/2026 will extend coverage of the social tariff, with discounts of up to 42.5% for vulnerable consumers and 57.1% for those experiencing severe poverty.
The reform also sends a positive signal in favour of electrification by reducing the Special Tax on Electricity (IEE) from 5.1% to 0.5%, something Fundación Renovables has been calling for for years. Other tax measures will also be applied to accelerate electrification. Examples include personal income tax deductions for the purchase of electric vehicles or for energy renovation work in homes, as well as linking heat pumps to CAE credits. It is therefore positive that direct tax changes are being introduced to encourage electrification.
However, we regret the inclusion of a reduction in the hydrocarbon tax, as this incentivises the consumption of fossil fuels and sends a contradictory signal in terms of energy policy. Nor do we agree with the VAT reduction on fuel, which should only be used for vulnerable households and strategic sectors. The same applies to the reduction in the Tax on the Value of Electricity Production for all technologies, since it should only apply to renewable generation in order to encourage the energy transition.
In another area, the reform points in the right direction, as it seeks to increase the deployment of renewables through the approval of Renewable Acceleration Areas (ZAR). This mapping tool will make it possible to define suitable areas for new photovoltaic and wind farms where there are no social or environmental impacts. When voting on this Royal Decree-Law, members of parliament must understand that the energy transition is the best way to gain sovereignty and independence from economic crises linked to fossil fuels.
The support this package provides for photovoltaic self-consumption should also be highlighted: the extension to 5 km of the radius for sharing energy, the reservation of 10% of grid nodes for self-consumption connections and the amendment of the Local Government Framework Law to facilitate the participation of municipalities in Energy Communities. A commitment is also made to approve the Royal Decree on Energy Communities within three months.
Finally, it should be stressed that the Royal Decree-Law includes very necessary measures to improve and make grid access more flexible. With this reform, the most advanced projects will be connected to the grid first, aligning the regulation with European legislation under the Grids Package.
Fundación Renovables calls for a sense of responsibility and demands that political parties approve this new reform, which includes many of the Foundation’s long-standing demands. At the same time, we regret that an energy crisis such as the current one has had to occur in order to promote a package of measures which, beyond the current situation, lays the minimum foundations needed to speed up our energy transition and make it fairer and more sustainable.
