Iberdrola feels Spain wind pain

Wind installations fell by more than 80% last year in Spain.

Wind installations fell by more than 80% last year in Spain.

Energy giant Iberdrola saw its Spanish wind business hammered by new regulatory measures that almost wiped out profits from the renewable source in its home country.

Iberdrola said in its renewables division, first-quarter earnings fell 63% before interest, tax, depreciation and amortisation (Ebitda) and net profits plunged 93%.

That was despite record wind generation in the January-March period.

Iberdrola said of the new Spanish regulation, which include a tax on production and change support arrangements: “The impact of these new measures has especially affected wind installations, rather than other technologies such as solar energy.”

The impact on Iberdrola’s overall performance was softened by strong contributions from the UK, US and Latin America.

The overall renewables operation saw Ebitda fall 27.1% to €371.4m ($514.4m).

At a group level Iberdrola said the Spanish measures made a €260m hit on its gross margin, and it expects a €380m impact for the year as a whole.

Despite that it said Q1 saw a “solid operational performace” with net profits up 8.4% to €952.6m, including one-off benefits from disposals.

Suction bucket is ready to sail

20 August 2014 04:42 GMT

Stability boosts Vestas profile

20 August 2014 04:27 GMT

AES sells UK wind portfolio

20 August 2014 01:03 GMT

Borkum Riffgrund turbine delay

20 August 2014 12:09 GMT

Vestas welcomes US PTC clarity

20 August 2014 11:08 GMT

Vestas boosts profits guidance

20 August 2014 07:00 GMT

UK's Ofgem reviews survey rules

20 August 2014 10:13 GMT

Four vie for UK offshore links

20 August 2014 09:25 GMT

US Wind top Maryland offshore bid

19 August 2014 04:02 GMT

3Sun gets Humber Gateway job

19 August 2014 01:48 GMT

PUP stands by Aussie RE goal

19 August 2014 11:48 GMT

Rame advances Chile wind plans

18 August 2014 10:58 GMT

'Bud Light' to power US brewery

15 August 2014 05:04 GMT

Become a Recharge subscriber!

Or try our free trial.

Order Subscription

Already a member?

Login


Recharge Monthly Magazine