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Wind Power

Tuesday
17 Dec 2024

Law in Approval Endangers the Future Development of Wind Power and Hydroelectric in Galicia

17 Dec 2024   
The associations signing this statement express our disagreement with the measures proposed by the Xunta de Galicia, as they immediately affect the regional renewable sector and in the medium term the entire electricity sector. Measures such as those proposed will inevitably result in an increase in uncertainty and litigation in the sector and, ultimately, a slowdown in the process, to the detriment of Galicia and Spain as a whole.

The Xunta de Galicia has proposed a series of measures relating to the wind and hydroelectric sectors, which it is processing in a draft law whose approval is imminent. The following measures are proposed in this draft that affect the renewable sector:

The processing of wind and hydroelectric projects will be facilitated if a certain proportion of the energy is sold to clients based in Galicia.

The closure of wind farms that decide not to repower after 25 years of their life is planned.

Firstly, the associations signing this statement would like to emphasise that wind farms whose lifespan extends beyond 25 years operate with absolute guarantees. In fact, the annual generation of renewable electricity from wind farms is currently, in the vast majority of cases, higher than at the time of their start-up, due to the improvements and investments introduced during their useful life, and which were expected to be recovered beyond 25 years.

Wind farm operators must freely make their decisions on extending their lifespan and repowering. The closure of a facility in perfect operating conditions due to an administrative decision is uneconomical and represents a serious distortion of competition in the market, as well as being a retroactive measure that conditions the authorisation granted at the time.

Secondly, the proposal to force wind and hydraulic developers to sell part of their energy to clients in the autonomous community is contrary to law. Authorisations for operation should not be an obstacle to the free market. An obligation such as that proposed by the draft law represents a competitive distortion and market fragmentation, compromising the constitutional principles in Spain, in particular the principle of market unity and the single European market.

The wind energy sector in Galicia has been subject to great legal uncertainty for years due to the suspension of authorisations, which in practice has prevented the development of new projects. These measures represent an additional blow to the investment climate in the electricity sector in the region.

Finally, as national business associations, we want to highlight the enormous importance of maintaining a dynamic Spanish market without internal barriers for all companies in the country. Forcing companies to sell in a region in order to operate there is contrary to the foundations of competition, the prosperity of the country and ultimately all its territories.

The energy transition is a fundamental process for Spain, from an environmental point of view and for the future competitiveness of the country. From the electricity sector we have demonstrated our commitment to its rapid development, always with the utmost respect for social and environmental concerns in the territory. Measures such as those proposed by the Xunta represent a clear step backwards in this endeavour and will inevitably result in increased uncertainty and litigation in the sector and, ultimately, a slowdown in the process, to the detriment of Galicia and Spain as a whole.

The Asociación Empresarial Eólica (AEE) is the voice of the wind energy sector in Spain. With more than 350 associated companies, it includes developers, manufacturers of wind turbines and components, national and regional associations, organisations linked to the sector, consultants, financial and insurance entities, among others. Its objective is to represent an industrial sector that employs more than 40,000 professionals in Spain, has 250 industrial centres and is the leading technology in the Spanish energy system, generating 24% of the electricity in the country and covering 27% of the demand.

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