FW: Spanish energy firms surviving on renewables

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302012


Spanish energy firms surviving on renewables


July 26, 2012
As strain continues to build on the Spanish energy sector, renewable energy
has come to be a driving force for many companies rather than a financial
drain, according to Reuters.

Spain, which is currently looking to dramatically slash its government
expenditures as it attempts to control its budget deficit, is preparing to
implement harsh taxes on electricity generators in the country.

The energy sector, which recently represented one of the strongest parts of
the economy, has become a major drain on the economy due to excessive tariff
costs associated with strict price controls.

As the industry prepares to face stiff new taxes, however, companies that
invested in renewable energy markets beyond Spain such as Iberdrola and
Acciona have seen profits from those businesses rise dramatically with
growing interest in regions from the U.S. to Brazil.

Nevertheless, Reuters reports that the energy industry has raised strong
objections to the new taxes, which it suggests could essentially eliminate
profits and dramatically increase risk of instability in the energy supply.

An outlook for the Spanish power market through 2020 is available at
PennEnergy's Research area.

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