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New legal scenario for renewable energy sources

The changes that have taken place in Spanish laws and regulations on renewable energy sources since 2010 have given rise to a new and sensitive legal environment for companies active in this industry.

Consequently, we at LIFE Abogados are counselling the companies adversely affected by this uncontrolled string of legal reforms.

The changes in the legislation that have given rise to this particular crisis in the renewable energy industry have gradually reduced the return on investments made in the late nineties and in the first decade of the 21st century. Some of the effects of these changes have been:

  • Higher taxes
  • Generating hours have been restricted in the case of photovoltaic power
  • Prices to generators are no longer updated in line with the CPI
  • The business model has changed following the approval of a new law governing the Electric Power Industry in December, 2014

From now on, it is the Government that dictates how much investors in renewable energy sources may earn, as a result of the “reasonable profitability” concept introduced this year through:

  • Royal Decree 413/2014, on the business of generating electricity from renewable energy sources, co-generation and waste.
  • Industry Ministry Order IET/1045/2014, introducing parameters for the remuneration of standard facilities, applying to certain facilities at which electric power is generated from such sources.

This string of regulations has given rise to many claims for compensation being filed against the Administration, to many investors losing interest in this industry and selling out, or to plants being closed rather than operating at a loss as a result of the new parameters.

We at LIFE Abogados study your case and offer the best personalized counselling.