The Xunta de Galicia’s proposal is to force Galician wind farms to sell 50% of their electricity to SMEs and Galician companies through PPAs. This proposal goes against the legislation of the European Union’s electricity marketcompetition rules and the Electricity Sector Act. Any intervention by a liberalized market It is an attack on the fundamental rights that govern the Galician autonomous community itself, in Spain and Europe..
One of the effects of this new initiative by the Council of Galicia -by imposing the sale of 50% of the energy generated to a certain group- would a disruption of market priceswhich one would ultimately harm other domestic or industrial consumers. This initiative, In addition to crippling developers’ investments in Galicia, it could ultimately make electricity more expensive for a group of the population..
Without yet knowing whether it is the intentions of the Xunta de Galicia to also apply this obligation to existing parks, which would be even more serious, the wind sector claims that this de facto expropriation would constitute a violation of current legislation and would force the demolition of the existing parks. contracts would increase the price of electricity, trigger demands from international investors and generate new arbitrations, in addition to resulting sanctions from the European Commission..
The installed capacity of renewable energy is increasing evokes all kinds of reactions. In Galicia, measures have been taken to adjust a minimum distance between wind farms and two more have been approved, but without being exempted controversy.
Joint press release AEE-AELEC-APPA Renewable energy sources. The associations denounce that the adoption of a law endangers the future development of wind and hydropower energy in Galicia.
The signatory associations of this declaration express their position disagreement with the measures proposed by the Xunta de GaliciaGood They have immediate consequences for the regional renewable sector and in the medium term for the entire electricity sector.
Measures such as those proposed by the Xunta de Galicia will inevitably result in an increase in uncertainty and litigation in the sector and ultimately in a delay of the process, to the detriment of Galicia and Spain as a whole.
The Xunta de Galicia has proposed a series of measures regarding the wind and hydraulic sectorsthis will be incorporated into a bill whose approval is imminent. This project proposes the following measures affecting the renewable sector:
- The processing of wind and hydropower projects will be facilitated if a certain part of the energy is sold to customers in Galicia..
- The closure of wind farms that decide not to generate energy again after 25 years of their lifespan is expected.
First of all, The signatory organizations of this declaration emphasize that parks with a lifespan longer than 25 years operate with absolute guarantees. In fact, annual renewable electricity generation from wind farms is currently in the vast majority of cases higher than what they had at the time they were commissioned, thanks to the improvements and investments made during their lifetime that are expected to be recovered older than 25 years.
Wind farm operators must and can freely make decisions about lifespan extension and repowering
The closure of a facility in perfect operating conditions as a result of an administrative decision is uneconomic and represents a serious distortion of competition on the market, and is also a retroactive measure that imposes conditions on the permit granted at the time..
Secondly, the proposal to force wind and water builders to sell part of their energy to customers in the autonomous community is against the law.. Permits for operations should not constitute an obstacle to the free market. An obligation as proposed in the draft law represents a distortion of competition and fragmentation of the market, endangering constitutional principles in Spain, in particular the principle of market unity and a common European market.
The wind sector in Galicia has been subject to great legal uncertainty for years due to the suspension of permits, 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, national business associations would like to emphasize the enormous importance of maintaining a dynamic Spanish market without internal barriers for all companies in the country. Forcing companies to sell into a region in order to operate there goes against the very foundations of competition, the prosperity of the country and ultimately all its territories..
The energy transition is a fundamental process for Spainfrom an environmental point of view and for the future competitiveness of the country. From the electrical sector, we have shown our commitment to its rapid development, always with the maximum respect for the social and environmental considerations in the area.
Measures such as those proposed by the.