Despite the advantages of its geography, Iberia still faces significant challenges in attracting renewable energy investments. In this regard, Bianca Dragomir, Director of Cleantech for Iberia, warns that there are aspects that need to be improved in order to consolidate its position.

One of the main challenges is fiscal competitiveness. The transfer of part of Repsol’s investments from Spain to Portugal reflects a structural problem that must be urgently addressed.

Repsol has decided to prioritize investment in a 4 MW electrolyzer in Sines (Portugal), while similar, larger-scale projects in Spain, with a total capacity of 350 MW, remain on hold.

Repsol’s decision is partly due to the Spanish fiscal environment, which Dragomir identifies as a critical factor for the development of renewable energy.

“It is essential for Spain to maintain its fiscal competitiveness to continue attracting investments in clean technologies,” emphasizes the executive in an interview with Energía Estratégica España.

The debate on the energy tax in Spain negatively impacts investment decision-making. This tax, originally temporary, has been described by Repsol and other companies as “unconstitutional, unfair, and illegal.”

The tax imposes a 1.2% levy on the non-regulated activities of major energy companies and has raised concerns among multinational corporations in the sector.

While Portugal does not have such a tax, the Spanish government has proposed making it permanent, which could drive more companies to seek alternatives in neighboring countries.

In addition to fiscal issues, infrastructure and interconnections between Spain and Portugal are also key areas for improvement.

Dragomir emphasizes that Iberian cooperation is essential for both countries to maximize their potential in clean technologies.

“It is crucial to promote joint Iberian cooperation to position the Peninsula as a leading destination for investment in clean technologies,” she stresses.

This would involve the creation of better energy transport infrastructure and greater electrical interconnection between the two countries, which would allow for more efficient management of generated renewable energy.

The EMER 2030 Mission, an initiative by the Portuguese government to accelerate the permitting of clean technology projects, is another example of the advancements positioning Portugal as an attractive destination for investors.

Dragomir highlights that “Portugal has made significant progress in streamlining projects, while Spain still has work to do in terms of administrative procedures and permitting.”

Despite these challenges, she believes the Iberian Peninsula has all the necessary ingredients to become a “powerhouse in clean technologies in Europe and the world.”

Natural conditions, a skilled workforce, and an attractive regulatory and fiscal environment are factors that must be leveraged to promote green reindustrialization and decarbonization in both countries.