Powering the energy transition with first-class advisory

Spain’s energy sector is one of the most capital-intensive in the economy. With just over 10,729 active companies and nearly 40,492 workers registered with Social Security, it generates aggregate revenue of €136.9 billion — the highest per-company figure of any sector analysed — with an average gross margin of 19.8%. This market structure, dominated by large utilities and complemented by a growing network of independent renewable developers, reflects the nature of the energy business: massive assets, long-term contracts and a value chain that concentrates returns in few hands. Spain is a world leader in solar photovoltaic and wind power generation, and its National Integrated Energy and Climate Plan (PNIEC) sets a target of 74% renewable generation by 2030.

The sector’s historical regulatory volatility — with retrospective changes to remuneration regimes that triggered intense international arbitration — has taught investors that regulatory risk management is not optional. Investment decisions in Spanish energy assets require rigorous legal and tax due diligence, careful structuring of the investment vehicle and continuous monitoring of sector regulation. The current context, with the impetus of NextGenerationEU funds and the pressure of the decarbonisation agenda, is generating an extraordinary flow of opportunities that demand advisors capable of moving with equal agility across the fiscal, legal and financial domains.

At BMC we advise renewable energy developers, utilities, infrastructure funds and grid operators on the tax and legal structuring of their investments in Spain. Our services cover due diligence on energy assets, SPV and project finance structuring, PPA contract negotiation, CNMC regulatory framework compliance and tax planning for projects throughout their lifecycle. We also manage the procurement of European and national grants for green hydrogen, energy storage and energy efficiency projects.

The ESG agenda is increasingly relevant for the sector. We support clients in designing sustainability strategies, issuing green bonds and sustainability-linked loans with KPI-based covenants, reporting under CSRD/GRI standards and integrating EU Taxonomy criteria into investment decision-making. Our integrated approach — combining financial, tax and legal advisory with deep sector knowledge — enables us to accompany clients from opportunity identification through to the disposal of mature assets.

Key services for the energy sector

Tax planning for energy projects involves structuring investments through special purpose vehicles (SPVs) to optimise corporate tax, accelerated depreciation of energy assets, the deduction for renewable energy investments, and the tax treatment of PPA revenues over the project lifetime. The Impuesto sobre el Valor de la Producción de Energía Eléctrica (IVPEE) at 7% applies to electricity produced and fed into the grid — a significant cost that must be factored into PPA pricing models from the outset.

Due diligence on energy assets must cover administrative authorisations (construction, exploitation), grid connection contracts, regulatory reimbursement regime status (RECORE), PPAs and offtake contracts, land rights and easements, environmental permits, and potential regulatory contingencies arising from historical changes to the reimbursement regime. We coordinate all workstreams — tax, legal, technical and financial — to deliver integrated due diligence within transaction timelines.

Grants and subsidies management in the energy sector covers Next Generation EU recovery funds channelled through national plans for renewable energy, energy efficiency and green hydrogen, competitive auctions for renewable energy capacity, IDAE direct subsidies for industrial energy efficiency improvements, ICO green credit lines for SME energy investment, and European Innovation Fund grants for innovative low-carbon technologies. We advise on the full cycle from programme identification to grant justification.

Regulatory challenges for the Spanish energy sector

ESG and sustainability reporting is central to the energy sector’s investor relations and financing strategy. Infrastructure funds, listed utilities and project developers face growing pressure to align with the EU Taxonomy for sustainable activities, prepare CSRD-compliant sustainability statements and issue credible green bonds or sustainability-linked loan instruments. We help energy sector clients build the measurement, reporting and verification frameworks necessary to access sustainable finance at competitive terms.

Power purchase agreements (PPAs) are the cornerstone of bankability for renewable energy projects. Long-term PPAs — typically 10 to 15 years at fixed or indexed prices — provide the revenue certainty that project finance lenders require. BMC advises on the full PPA documentation cycle: term sheet negotiation, contract drafting, regulatory authorisation and tax treatment of PPA flows over the project lifetime. We also advise on corporate PPAs, where an industrial company purchases renewable electricity directly from a generator to meet its RE100 or CSRD commitments.

KPIs and trends for Spain’s energy sector 2025-2026

Spain installed more than 8 GW of new renewable capacity in 2024, bringing total installed renewable generation to over 78 GW and positioning the country among Europe’s leading renewable energy producers. The Plan Nacional Integrado de Energía y Clima (PNIEC) targets 74% renewable generation by 2030, requiring an average annual investment of €23 billion in the electricity system. Green hydrogen projects along the Mediterranean H2Med corridor are attracting significant international investment, with Spain positioned to become a major exporter to Northern Europe through Germany and France.