EDP set to fight Spanish incentive cut in EC

SPAIN: Portuguese utility EDP is reportedly seeking to bring the Spanish government before European Union tribunals in a bid to quash Spain's new wind regulation -- ushered in on 2 February.

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The decree retroactively removes a production incentive introduced in 2004, supposedly state-guaranteed for 20 years of plant life. According to reports, EDP is challenging the Spanish government on the grounds that the regulation contravenes the European Charter's basic principals of investment security.

EDP's intention, reported by the national press, follows a 13 February statement from Spain's national wind association, AEE, urging both its members and the country's 17 regional governments to appeal the decree.

The February regulation, passed by decree without consulting either the sector or the national electricity regulator, is "illegal" and "dictatorial", says Rocio Sicre, doubling up as general manager of EDP's Spanish renewables division and AEE president.

AEE says over 80% of operators had switched to that option between 2008 and 2012. Yet operators of Spain's 22.8GW of existing capacity are now all forced into a fixed tariff alternative, which, furthermore, is indexed below inflation.

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