AEE files case against Spanish government

SPAIN: Spanish national wind association AEE has filed a case against the government's renewables reform and cuts to wind power sales, ushered in by decree-law in February.

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Decree-law status means the reform as a whole may only be appealed at home by a regional or central government body. Accordingly, AEE lawyers are challenging individual elements of the reform as they come into force.

The association's appeal rests on a 1997 law demanding "reasonable profits" and "long-term predictability" for renewables.

The February reform, AEE argued, contravenes predictability by ending the production incentive by which over 90% of operators sold power on the wholesale electricity market.

The reform forces those operators to opt for the fixed feed-in tariff (FIT) alternative. It also alters the inflation index for that tariff, paying operators EUR 81.24/MWh; lower than last year's EUR 81.27/MWh FIT.

Together with a 7% tax clamped on all generation starting December 2012, AEE said the reforms will cost the sector EUR 6 billion to 2020.

Outside Spain, AEE is also seconding Spanish renewables association APPA's push for the EU courts to repeal the Spanish reform.

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