Page 52 - European Energy Innovation - Summer 2014
P. 52
Summer 2014 European Energy Innovation


The Spanish renewable energy

sector at a critical point

By José Miguel Villarig, Chairman of the Spanish Association of Renewable Energy Companies, APPA

The imminent approval and with the excuse of lowering framework, devised since 2009 by
of the Royal Decree electricity prices, has only been the previous government and the
regulating the activity acting against technologies current one, has meant that Spain
of electric energy of the already extinct Special is irrevocably losing its hard won
production from renewable Scheme and, in particular, against position of worldwide leadership
energy, co-generation and renewable energies which are the in the renewables sector.
waste sources is a further step chief victims of their supposed
in the bullying and destructive energy reform. Paradoxically, it is The legal insecurity and
strategy that the Partido precisely renewables that, when regulatory chaos in which the
Popular Government has been coming onto the market, are the sector is immersed have placed
implementing since it came technologies that significantly it in a critical situation that
into power and its debut with a reduce electricity prices. As endangers its future. This is all
first Royal Decree law that was a the diagnosis was incorrect, in because the Government has
moratorium for renewables. The considering that renewables were taken on board the diatribes of
Association of renewable energy the main culprits for the deficit the electricity giants intent on
companies – APPA – will appeal and levying all kinds of cutbacks maintaining their oligarchy and
the Royal Decree and all the on them, the Government is not has identified the feed-in tariffs
Government’s regulations to the managing to wipe out the tariff for renewable energies with
European Commission and at all deficit which, up to March, was the tariff deficit. It is actually
judicial levels, both nationally and already up to €2,098 million quite the reverse, the problem
internationally. Euros. with the deficit lies in the lack
of competition in the electricity
The new Royal Decree radically With public and private efforts, market and the excessive
changes all the conditions under the Spanish renewable energy payments to nuclear power
which investments were made sector managed to become a stations and hydroelectric giants,
and submerges the sector in an model for success used as an denounced by the European
absolute legal insecurity that is example worldwide. The figures Commission and the old National
inappropriate in a developed are eloquent. The sector closed Energy Commission.
country, as it applies retroactive 2013 with an installed capacity
measures that have made of 50,689 MW, which involved Some details: In 2012 renewable
Spain the country with the most 113,575 GWh of electricity energies lowered the OMIE daily
international lawsuits in the production which was the main market price by €4,056 million
world. The final nail in the coffin, source of electricity generation Euros, with a saving on the daily
that could take the Spanish as it covered 41% of the demand market of €18.12 for each MWh
renewables sector to the verge of for electricity. The sector’s input purchased. The net accumulated
extinction, would be publication into Spanish GDP reached 1% price drop (savings less feed-in)
of the Order for payment in 2012, with a total contribution for the period 2005-2012 was
parameters that is currently in the of €10,563 million Euros, with €5,639 million Euros, with the
pipeline. positive tax and trade balances, tariff deficit that could have been
helping to reduce the Spanish generated being reduced by
At APPA, we ask ourselves once energy deficit which was €41,000 that amount. Therefore, it can
again what interests are served million Euros in 2013. be clearly stated that renewables
by a Government that, in its aim have not been the cause of the
to end the so-called tariff deficit Nevertheless, the regulatory tariff deficit.
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