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Spain

Spain

Galicia wind group sues over tariff cut

The Galicia wind association, EGA, has sued the central government for reducing the guaranteed rate of payment for renewable plant, claiming this has cut wind earnings by up to 8.93% (Windpower Monthly, February 2000). The reduction came into force on January 1. EGA claims the lower tariff will "seriously jeopardise" the commercial investment in wind power expected in Galicia's wind plan. The plan allows for investment in excess of ESP 450,000 million (EUR 2.7 billion) to increase wind capacity from the current 500 MW to 3135 MW. If the Supreme Court rules in favour of EGA, the tariff cut will be repealed. EGA's general secretary, Iñigo Muniozguren, laments that the cut far exceeds this year's 2% cut in the electricity consumer price, thus "discriminating in favour of conventional energy production, which is not only environmentally aggressive but which also relies on massive imports of fuel and subsidies." The ten wind company members of EGA are Álabe, Desa, Easa, Elecnor, Eurovento, Gamesa, Made, NEG Micon, Norvento and Union Fenosa Energías Especiales. EGA is the second wind association to consider suing a national government over wind payment. In March, the Danish Wind Turbine Owners Association (DV) was to sue the Danish government for breach of contract in not going ahead with its green credit market as announced. DV dropped its case a month later (Windpower Monthly, May 2000).

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