Spain, with 4830MWe of wind energy capacity installed, overtook the USA in 2002 to become the second biggest wind energy producer, after Germany, helped by government incentives.
Currently, the government sets a premium that renewable energy customers must pay on top of the price, aimed at compensating firms in the renewable sector. The government sets the premium according to moves in the price of electricity. However, a proposal from the energy regulator, which the government is likely to adopt, will take account of other factors, such as the cost of investment, operation and maintenance. This system will allow operators to know what income they can expect, rather than being dependent on fluctuating electricity prices.
Wind energy capacity in Spain has grown by 700 per cent over the last four years, and the industry is facing a profitability squeeze. In order to expand further, firms will have to build wind farms in sites that are not as suitable as those that have already been constructed, as the best sites have already been taken.
Linkedin
