Spain is satisfied with the new accounting methodology for investments in energy efficiency

The information published by Eurostat clarifies the accounting rules applied to the treatment of energy performance contracts for the different types of public investment.

Until now there was an obstacle to the undertaking of these investments by the public sector because of the obligation to calculate the entire cost of the initial investment, both from the public sector and from the private sector, as a deficit. Henceforth, the impact of the initial investment will not be classified as a deficit under certain conditions, which will give a tremendous boost to meeting the energy and climate targets of the European Union.

In April 2017, the Energy Ministers of France, Italy, Portugal and Spain sent a letter, upon an initiative from Spain, to the President of the EU Energy Council in which they ratified their commitment to significantly improving energy efficiency in line with the European Union. These four countries pointed to the importance of both public and private investment for reaching these targets. To achieve this, they claimed there was a need to amend European legislation in order to remove all the unnecessary obstacles to investment, in particular, the accounting rules.

In the last term of office, President of the Government Rajoy had already made this proposal at the European Council on Energy and Climate Policy in October 2014. This issue was also addressed in the negotiations of the so-called "Winter Package' and at a host of meetings of the European Parliament and Commission.

Energy efficiency enables energy costs to be reduced, together with dependency on imports, while creating local jobs. But this also requires a significant initial investment, particularly in relation to the renovation of buildings. Energy performance contracts (EPC) can help the construction sector to increase the investments necessary in the context of growing interest from private investors and their experience of its rapid development.

Non official translation