Energy sector stakeholders discuss 'hyperregulation' and the need for greater government coordination

The meeting, held at the Madrid offices of the consulting firm PKF Attest, served as a space for strategic analysis at a decisive moment for the future of energy, marked by the transformation of the model, regulatory pressure and geopolitical tension.

Madrid, April 4, 2025. - PKF Attest has held in its offices in Madrid a meeting with representatives of some of the most relevant companies in the electricity and energy sector to discuss the impact of regulation on the competitiveness of the sector and the importance of anticipating as a differentiating element in a context marked by geopolitical uncertainty and the transformation of the energy system. Regulatory pressure and geopolitical tension, the network investment deficit, unclear taxation at the start of projects and a price that often compromises the success of the project were the central themes of the session.

The meeting was attended by experts from entities such as Iberdrola, Repsol, Enagas, Saeta, AELEC and RIC Energy. Elisa Gil, Director of Regulation at PKF Attest, highlighted that "the energy sector is hyper-regulated and requires constant negotiation to adapt to a changing reality", underlining stability as a differential value in an environment of strong regulatory and political pressure. Teófilo de Luis, of counsel in regulation of the firm, warned about the lack of regulatory definition that generates a "perfect storm environment" that puts at risk the willingness to invest. "This is not the time to generate uncertainty, but rather to be firm and bet on cleaner energy capable of supplying demand," he added.

Ana Cerezo, Head of Public Affairs at Iberdrola, offered a clear vision of the current situation, pointing out that "Europe has made the diagnosis: the focus is no longer solely on the environment or only on decarbonization, now the main objective is competitiveness". He stressed that "energy partners that until two days ago were fixed and reliable, are now not so much so", in reference to the geopolitical use of energy by countries such as Russia. "Russia has used energy as a weapon. That is why moving towards energy independence is a strategic priority for Europe," he said. He also emphasized that Spain depends on the import of fossil fuels and that "renewables, in addition to being sustainable, provide price competitiveness". Cerezo highlighted the crucial role of nuclear energy in the current mix: "The nuclear shutdown is not being fulfilled and it will play a crucial role. If it disappears, electricity would rise by 23% for consumers and 36% for industry". Finally, he criticized fiscal policy: "If decarbonization is an opportunity, but we are taxing it, it is as if we were imposing tariffs on ourselves".

Belén Zamora, from Enagás, focused her speech on the European level and the need for long-term clarity. "Europe has to decide what it is going to do with Russia: are we going to trust them or not?" she said, noting that "the common energy infrastructures with Russia are no longer there, and that requires a coherent strategy". Zamora pointed out that the war in Ukraine benefited the United States by becoming a new key supplier of liquefied natural gas (LNG), and that "the European response has been to try to buy in advance to avoid tariffs and tensions, but that cannot be a permanent solution". He also warned about the threat of deindustrialization if business activity is not facilitated: "There is a regulatory, administrative and fiscal complexity that does not help. If we want to maintain the industrial fabric, we must facilitate it". He also insisted that consumers "must understand their bill and be able to make conscious decisions about what they consume". And he underlined the current importance of gas and nuclear power in maintaining the balance of the electricity system: "They are essential to maintain the parameters of the grid. We must analyze where the bottlenecks are and what are the real challenges of the network.

Guillermo Sáez, Head of M&A at SAETA, gave a critical view of the regulatory rigidity affecting the development of renewables in Spain. "The real war is between the US and China, and we are suffering the consequences. Europe is not as relevant as I thought it was, and that is also noticeable in the energy sector," he said. He called for a more pragmatic vision in the transition: "Gas and nuclear are still necessary. They are going to disappear, yes, but the withdrawal should be more progressive". Sáez denounced that "there is a lot of energy that is thrown away due to losses in the network", and pointed out that "there has been a very important private investment that has not been accompanied by public investment". He also called for greater flexibility in energy planning: "If the public grid does not reach us, we understand it, but if they do not, they should at least be more lax with those who do want to reach us". In addition, he called for direct support measures: "Renewables, although it sounds paradoxical, do not stand alone. Photovoltaic plants suffer a lot. In other countries there are guaranteed minimum incomes or auctions with contracts for difference. Not here. He also criticized the tariff design: "We have a tariff with a ceiling, but without a floor. If the price falls below the profitability threshold, it is lost". And he called for eliminating tax burdens such as the generation tax: "It was created to compensate the tariff deficit, but that deficit will disappear in 2028. So should the tax.

Marina Serrano, president of AELEC, insisted that "we are in a moment of profound change" and that regulation, planning and collaboration between the public and private sectors will be decisive in order not to lose competitiveness in the process. "Europe has opted to lead the energy transition, but breaking with Russia in the energy field has forced us to balance three major objectives: security of supply, competitiveness and decarbonization," he said. In this context, he stressed that the only sustainable path is to produce more renewable energy, but he also warned of the limits of the model if it is not accompanied by an increase in demand: "It is expected that in 2030 80% of the energy produced will be renewable, but if there is not enough demand to absorb it, the system will not work". For this reason, he strongly defended the electrification of demand as a prerequisite for meeting climate targets: "For years, electricity demand was not growing. Now it is finally starting to do so, but we need to accelerate that process."

He also stressed the importance of the grids as a pillar of the system: "Without well-dimensioned distribution and transmission grids, there is no point in increasing renewable capacity. The grid is the system. Serrano also stressed the need for investors to have long-term regulatory visibility: "The financial rate of return must be clear. Investors need to know how they are going to get back the money they are risking." To this end, he called for the authorities to "listen more to the sector, and for the government and the CNMC to work in a more coordinated way with the industry".

Hajar El Mansouri, regulatory specialist at RIC Energy, focused on the administrative and regulatory obstacles facing the development of renewable projects in Spain. "There is a very clear lack of coordination between the Ministry and the autonomous communities, and this has direct consequences on the progress of projects," he warned. As an example, he mentioned a recent draft royal decree focused on the protection of flora and fauna that, without sufficient coordination, "could jeopardize the viability of a wind farm." In his opinion, "there is a lack of real dialogue between the Ministry and the Energy Secretariats, and this often results in decisions that slow down the energy transition".

El Mansouri also denounced that, despite the efforts made from Europe to encourage the development of new technologies, their implementation is not being facilitated at the national level: "From Brussels they are offering us funding for hydrogen storage, but then here we find that we do not even get a building permit. This generates a hidden moratorium that paralyzes key projects". In his speech, he stressed the urgency of adapting administrative procedures to the needs of the new energy model: "We need agility and a common vision between the different levels of the administration, because otherwise we will lose investments and strategic opportunities".

Ana Delgado, from Grenergy, also took part in the event, and gave a positive assessment of Spain's role in the energy transition: "We have been pioneers in many things, and there are countries such as Germany that are much further behind, for example, in storage". However, he warned that "the government has been hasty in certain regulations, sometimes contradictory, and there has been a lack of listening to the sector, especially at the regional level". In his opinion, "in a turbulent period like the current one, it is essential to recover dialogue and adopt a calmer approach". Delgado also raised a structural issue: "Renewables are at a disadvantage compared to sectors such as refineries, which generate fewer jobs but continue to receive more support. That is the elephant in the room that nobody wants to talk about."

Jon Nieva, legal director of Acciona, reflected on the international context and the evolution of hydrogen as an energy vector: "The United States has realized that China was eating its toast, and now we are in a stage of redefinition". In this sense, he explained that after the years of the "hydrogen boom", the market has stabilized: "A few solid projects will remain, but the problem is still the gap between what a consumer is willing to pay and what it costs to produce it, which in many cases has widened". He also stressed the importance of raising awareness in society: "Consumers need to be educated about what it really costs to generate this energy". In addition, he pointed out certain regulatory barriers that penalize renewable development in Spain: "We cannot build on rural land, only on industrial land, and that puts us at a disadvantage". Added to this is the distance between production and distribution points, which "increases logistics and transport costs".

Macarena de la Llave, head of institutional relations at Repsol, emphasized that the company's vision is "technological neutrality", stressing that some technologies should not be favored over others but "allow each solution to have its opportunity, depending on the needs and context". In this sense, he emphasized the importance of the National Integrated Energy and Climate Plan (PNIEC), pointing out that "it is essential that in 2025 the Government lays the necessary foundations to meet the objectives that have been proposed". De la Llave remarked that, in order to achieve these objectives, 3,000 million euros in investment will be needed, as stipulated in the plan. He also called for public-private collaboration: "It is essential that the public and private sectors work hand in hand, because without this collaboration it will not be possible to meet the ambitious targets set".

On the other hand, he stressed the need to strengthen collaboration between the government and the autonomous communities: "Coordination between both levels of government is key to making effective progress. In our case, we are replacing fossil fuels with renewable waste, but in some autonomous communities obtaining this raw material for generation is complicated". He pointed out that difficulties in accessing renewable materials in some regions are delaying the energy transition and hindering compliance with targets at the national level.

The event served as a forum for reflection and analysis at a key moment for the sector, in which regulation, investment in infrastructure and institutional collaboration are essential levers for an efficient, competitive and sustainable energy transition.