Renewables support cuts unsettle investors
A wind farm in Spain. Retroactive changes to the country’s renewables subsidies have angered investors. (Iberdrola)
Retroactive changes to renewables support schemes are blurring the outlook for investment in the sector, with wider implications for gas-to-power.
Spain is perhaps the most obvious example of how reductions in national subsidies for renewables can unsettle investor confidence. Since November 2011, 32 investment dispute settlement cases have been filed by foreign investors against the country under the Energy Charter Treaty, all relating to reductions in its renewables subsidy schemes. Domestically, there are hundreds of cases being heard by the Spanish Supreme Court.