On 21 May, Spain’s Official State Journal (Boletín Oficial del Estado, or BOE), published Law 7/2021, of 20 May, on climate change and energy transition (Law 7/2021) after it had been approved by Spanish Congress. Law 7/2021 entered into effect on the following day. We look briefly at the law below, and for more analysis on the law see our e-bulletin here.
What the law includes
The content of Law 7/2021 has seen a number of changes since the bill that was sent to Spanish Parliament, after having been approved by the Council of Ministers on 19 May 2020.
On the one hand, some of the bill’s content related to energy (probably those with the most specific content, related to the energy sector and to the remunerative framework applicable to renewable energy facilities, access to the transmission and distribution networks, the regulation of energy storage and the position of the independent aggregator) has already been included in Royal Decree-Law 23/2020, of 23 June, which approved measures in the matter of energy and in other areas to reactive the economy (Royal Decree-Law 23/2020) – analysed here – which has therefore been in effect since 25 June 2020. This is why it has not been included in the definitive version of Law 7/2021.
However, at the same time, when passing through Parliament, additional provisions have been added to the new Law, which has resulted in the definitive version being longer than the bill (it has 40 articles, 9 additional provisions, 3 transitional provisions, one derogatory provision and 15 final provisions). The length of the new Law is therefore considerable, combining provisions that are clearly forward looking or, even, related to future planning, with others that are effective more immediately and that, independently of their inherent content, modify a number of pre-existing laws, including the Electricity Sector Law 24/2013, of 26 December (LSE), the Hydrocarbons Sector Law 34/1998, of 7 October (LSH), Law 18/2014, of 15 October, which approves urgent measures for growth, competitiveness and efficiency (Law 18/2014), Law 15/2012, of 27 December, on tax measures aimed at energy sustainability (Law 15/2012) and Law 3/2013, of 4 June, on the creation of the National markets and Competition Commission (Law 3/2013).
Energy specific content
In our full e-bulletin we look at the following most relevant content of Law 7/2021 as it relates strictly to the energy sector:
- National renewable energy, energy efficiency and emissions reduction targets
- Measures related to renewable energy facilities
- Measures related to hydrocarbons, biogas and biofuels
- Measures in relation to the electricity and gas sector regulated activities: remunerative methodologies and limits on intra-group loans
- Measures related to minerals and radioactive facilities
- Measures related to the income from greenhouse gas emission allowance auctions
- Measures to foster sustainable mobility and electric vehicles
- Measures aimed at energy efficiency
- Planned reform of electricity sector regulations and review of environmental taxation