EU Energy Policy

Spain’s renewables regime clouds outlook for investors

A lack of clarity on government policy risks turning investors away from Spain’s power sector, analysts say A lack of clarity on government policy risks turning investors away from Spain’s power sector, analysts say.
By Andreas Walstad 13 February 2018 0 29565
Orense wind farm, Spain. A Spanish wind farm. (Iberdrola)

Developing the projects necessary to meet Spain’s EU renewables target will be tough despite ongoing investor interest, analysts say.

The phase-out of subsidies for renewable energy generators in Spain after 2013 created an uncertain outlook for the country’s energy mix. But with technology costs coming down and cheaper loans available, investors have so far proven fairly resilient.

Spain awarded a total of 8.7 GW of new renewables capacity via auctions in 2016 and 2017, which shows the lack of subsidies has not totally discouraged investors. Endesa and...