LOCATION/TYPE

NEWS HOME

[ exact phrase in "" • results by date ]

[ Google-powered • results by relevance ]


Archive
RSS

Add NWW headlines to your site (click here)

Get weekly updates

WHAT TO DO
when your community is targeted

RSS

RSS feeds and more

Keep Wind Watch online and independent!

Donate via Paypal

Donate via Stripe

Selected Documents

All Documents

Research Links

Alerts

Press Releases

FAQs

Campaign Material

Photos & Graphics

Videos

Allied Groups

Wind Watch is a registered educational charity, founded in 2005.

News Watch Home

Spain proposes to slash wind subsidies 

Spain plans to cut subsidies for wind power generation, while increasing support for other renewables.

Under the proposals, wind generators would see their feed-in tariffs reduced from about €97 ($129) per megawatt hour to between €67 and €87/MWh. However, the government proposes boosting the level of support for other technologies, such as solar.

“Wind power subsidies were exaggeratedly high,” said Spanish energy minister, Ignasi Nieto, “especially since the technology has developed in the last year and costs have fallen.”

The Spanish government is consulting on the proposals, with analysts divided on what the impact will be on the market.

Ben Warren, from the renewables group at Ernst & Young, said: “The reduction in the level of support of between 15% and 30% will undoubtedly have an adverse impact on the overall attractiveness of the Spanish wind energy sector for investors and developers alike. However, the Spanish market is likely to continue to experience substantial levels of new installations.”

He added: “There are certainly benefits of a balanced portfolio of renewable energy supply. The risk is that increases in solar, biomass and combined heat and power contributions as a result of the proposed changes do not outweigh any possible resulting reductions in the levels of new wind capacity installed.”

But Catalina Robledo, Barcelona-based European wind energy analyst at consultancy Emerging Energy Research (EER), said that she does not expect the changes to have a negative effect on the rate of new build. “The feed-in tariffs they are being offered are still good, especially compared to what is available in other parts of Europe,” she said.

EER estimates that onshore wind installations will increase by about 2,000MW a year, despite the proposed tariff changes. By the end of 2006, 11,500MW will be in the ground, meaning that Spain has a good chance of meeting its target of 20,000MW of capacity by 2010, she said.

But investment bank Citigroup issued a research note saying that the target “could not be achieved” if the government proceeds as planned.

Citigroup also expressed concern over reports that the changes could be applied to capacity installed before January 2008, rather than only to new capacity, as initially expected. Its analysts said that the move could reduce the valuation of a typical portfolio of wind farms ““ half new and half old ““ by 15-20%.

Acciona, Iberdrola and EDP are particularly exposed to this risk ““ with 50% of Acciona’s valuation riding on its wind industry activities, Citigroup said.

Warren agreed that any move to apply the changes retroactively could have a negative effect: “Investors would consider any jurisdiction applying retroactive changes to policy to have a high level of regulatory and political risk, and would therefore demand higher returns from their participation.”

environmental-finance.com

This article is the work of the source indicated. Any opinions expressed in it are not necessarily those of National Wind Watch.

The copyright of this article resides with the author or publisher indicated. As part of its noncommercial educational effort to present the environmental, social, scientific, and economic issues of large-scale wind power development to a global audience seeking such information, National Wind Watch endeavors to observe “fair use” as provided for in section 107 of U.S. Copyright Law and similar “fair dealing” provisions of the copyright laws of other nations. Send requests to excerpt, general inquiries, and comments via e-mail.

Wind Watch relies entirely
on User Funding
   Donate via Paypal
(via Paypal)
Donate via Stripe
(via Stripe)

Share:

e-mail X FB LI TG TG Share


News Watch Home

Get the Facts
CONTACT DONATE PRIVACY ABOUT SEARCH
© National Wind Watch, Inc.
Use of copyrighted material adheres to Fair Use.
"Wind Watch" is a registered trademark.

 Follow:

Wind Watch on X Wind Watch on Facebook

Wind Watch on Linked In Wind Watch on Mastodon