Iberdrola suspends investments in certain renewable energy projects in Spain
Iberdrola has suspended tenders for goods and services associated with the construction of renewable energy projects in Spain following the introduction of new measures in the country that limit the profitability of non-emitting power plants.
The utility, which is currently building around 1.8 GW of solar PV and wind farms in Spain, sent letters to its suppliers this week informing them of the move, which it says will be in place until a detailed assessment of the economic viability of the projects has been carried out.
The announcement comes after the Spanish government introduced a package of measures earlier this month to mitigate the impact of record wholesale electricity prices, including a mechanism to limit windfall profits from some power projects. renewable. Applying to plants with a capacity greater than 10MW that sell electricity on the open market, the new rules are in place until the end of March 2022.
Iberdrola is part of the Spanish Association of Electricity Companies (AELEC), which has warned that the rules could make some projects unprofitable. Pedro González, director of regulation of the association, said PV Tech Premium Last week, there were fears that the measures could be extended, creating uncertainty over future investments in renewable energy in Spain.
Iberdrola stressed that his decision does not apply to projects supported by compensation frameworks such as auctions, which are not affected by government measures. The company’s Iberenova subsidiary was one of the big winners in the renewable energy auction in Spain at the start of the year, scooping up 243 MW of solar PV capacity.
It remains to be seen how the new policy will impact the country‘s 3.3 GW renewable energy auction next month, which will allocate 700 MW of capacity to projects that can be operational next summer as the government is seeking to support the rapid deployment of new solar and wind power plants to help bring down high electricity prices.
Iberdrola CEO Ignacio Galán said earlier this year that the company will invest 150 billion euros (183 billion US dollars) by 2030 with the aim of reaching 95 GW of renewable energy installed in the world by the end of the decade.