How Spain risks slowing down the energy transition

Looks like someone isn't happy with the Spanish Government's plan -

The Spanish Government is planning to impose a new financial measure on certain wind farms and other power generation assets. It says these assets are earning “windfall profits” as a result of higher carbon prices. If approved, the measure would impact the revenues of wind farms and other power plants. More crucially it would undermine investor confidence in Spain’s support for renewables – which risks slowing down the energy transition.

But the Spanish Government now seems to think it’s unfair that low-carbon power plants should be benefitting from a higher electricity price when they’re not incurring the same CO2 costs as the coal and gas plants. And they propose to impose a new measure to recoup the alleged “windfall profits” from nuclear and hydro plants and some wind farms. They propose to apply the measure to those wind farms built before 2005 when the ETS started and that are no longer receiving public financial support.

The measure the Spanish Government proposes is plain wrong.

The whole point of the EU ETS is to incentivize renewable energy. Imposing such a measure on wind farms runs counter to logic and to the spirit of the ETS. And it sends an unhelpful signal to investors: that the Spanish Government is not averse to changing the rules on renewables investments.

After all, investors want to make huge profits – Read more at link.