Spanish wind power downturn: 0 MW installed in 2015

Spanish wind power is going through a difficult period. In 2015, the installed capacity of new plants did not exceed 1 MW, the first time since the 1980s, when this energy sector began to develop in Spain. Thanks to nearly 23 GW of installed capacity, Spain meets 19% of its electricity consumption through wind power plants.

The reason for the reduction in newly installed capacity is the payment system that came into force in 2013. Since then, only 27 MW has been installed. Spain has not only scrapped support for new generation sources, but has also reduced support for existing sources. In 2014, reports emerged that some wind farm operators were considering selling them.

At the beginning of 2015, Spain ranked fourth globally in terms of installed capacity. It is now clear that the situation will reverse.

The current situation is also being felt by Spanish companies involved in wind turbine manufacturing. They have reoriented their business towards exporting wind turbines abroad and to countries with active support for wind power.

Spanish companies Iberdrola and Gamesa are nevertheless continuing to see their share prices rise. Much more significantly in the case of Gamesa, which recently announced that it was considering a partnership with Siemens, lifting its share price by a further 20%. Gamesa shares gained around 110% in 2015.

The scaling back of support for wind farms also threatens the binding EU targets Spain must meet by 2020. Estimates indicate that a further 6,400 MW is needed to meet the targets.

Before the new legislation was adopted, more than 6 GW of capacity was installed over a four-year period. Above all, the change represents a major disruption to the stable investment environment.

Renewable energy representatives are calling for a change to the current auction scheme under which support is allocated. The first 500 MW auction ended with zero support.