Uncertainty costs Spanish wind power dear, says Deloitte
Spain’s wind power industry will continue to shrink if the government fails to establish a stable and predictable regulatory framework that offers incentives to the sector, according to a study by Deloitte cited by the Spanish wind energy association, AEE.
The current regulations governing the development of new wind farms expire at the end of this year, and AEE has previously criticised the government for failing to start discussions over what will replace them.
The share of wind power in Spain’s gross domestic product (GDP) fell every year between 2009 to 2011,while 14,319 direct and indirect jobs were shed since end-2008, the Deloitte study says.
Some €27bn ($35.2bn) in investments could be lost if the current uncertainty isn’t addressed, Deloitte claims.
Spain’s renewables sector was shocked earlier this year when it emerged that the government of Prime Minister Mariano Rajoy planned to impose a tax on the output of wind, solar and nuclear plants.
The wind power sector contributed €2.62bn to Spain’s economy in 2011, representing 0.24% of the country’s GDP, Deloitte said.