Fury over compulsory wind repowering and power sales law in Spanish region
Close to 3GW of onshore wind capacity has already been thrown into limbo by a tangle of environmental objections in Galicia – now teeth are grinding over a new repowering law
Renewable energy industry leaders in Spain are up in arms after lawmakers in Galicia approved proposals that will compel investment in repowering wind projects and dictate that at least half of the power from new plants is sold to local companies.
The new laws, just approved by the autonomous regional parliament, will require developers to replace turbines after 25 years, or risk losing their operating permits.
The package also contains provisions obliging new and repowered wind farms to sell at least half of the electricity they produce to Galician companies through power purchase agreements (PPAs) at “a stable and competitive price”.
In a new statement, released in conjunction with other industry associations, the AEE said the measures, approved as part of Galicia’s annual budgetary package, would create regulatory uncertainty and generate future litigation.
About 3,000 wind turbines operating in Galicia are expected to reach their 25-year mark in the next five years. The regional legislation allows an 18-month grace period before obligations kick in.
Vazquez defended the measures, which he described as "flexible" and "proportional" and in line with the permits originally granted to developers.
If unfeasible for technical or environmental reasons, the process will not go ahead, he added.
But in a letter to the Galician regional authority, Spain’s association of independent energy traders (ACIE) joined the chorus of criticism, arguing that the measures could result in “posible breaches of contracts for existing long-term power purchase agreements”, as well as risking non-compliance with European Union rules governing electricity markets.
Judicial limbo
Close to 3GW of onshore wind capacity has already been thrown into limbo by a tangle of environmental objections in Galicia, an autonomous region of northwest Spain where judges have granted a raft of injunctions in conflict with a federal initiative to streamline permitting for renewables.
Most of the injunctions have been granted in favour of regional environmental groups such as the Galician Ecological Defence Association and Galician Ecologists in Action.
Some of these claims were on procedural grounds, especially relating to environmental impact assessments (EIAs), as well as interpretations of environmental risk criteria.
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