SPANISH WIND TO FIGHT TAX

Spanish tax the “final blow for wind energy”

Tom Rowe, July 18, 2012 (Revista Eolica y del Vehiculo Electrico)

“Plans to levy a charge of up to 11% of revenue on Spanish wind energy producers have been condemned by the industry there and are described as being “the final blow for wind energy” by President of the Spanish Wind Energy Association (AEE) Rocio Sicre…

“Media reports have said that the production of nuclear, hydroelectric and thermoelectric energy would be charged a lower 4 %, with an additional tax of 10 euros per megawatt for nuclear and 15 euros per megawatt for hydroelectric…"

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“According to Sicre, the economic impact of the tax would be around €3,000 million; it would reduce the profitability of wind farms by 30% and around 15% of facilities in place could not meet the payment to service the debt from the beginning…[He added the tax rate is legally dubious because Spain’s Electricity Industry Act promises a reasonable return] and changing the rules mid-game would break the trust of domestic and international investors.

“The Spanish wind farm industry has asked the government of Mariano Rajoy to reconsider the tax and has pledged to contest the measure…[because the wind industry creates]wealth and employment, reduces fossil fuel imports, [and] exports technology…”

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