THE renewable energy business, popular five years ago in Almeria, is in turmoil. Businesses are on the back foot as investors have been knocked-back by the withdrawal of premiums.
Almost all of the renewable energy projects in the region have either stalled or broken down completely. A total of 51 projects have so far been shelved because 26 municipalities have withdrawn funding, and 25 investors have pulled out.
The Provincial Delegate for Economy Innovation & Science, Adriana Valverde, criticised the measures taken by central government affecting renewable energy saying: “They create uncertainty and jeopardise profitability, which is causing many companies to abandon their projects.”
She explained: “The Government has changed the rules in mid-game by introducing a new tax on power generators which seriously compromises the profitability and thus the future of renewable energy.”
Valverde stated that “The new 7 per cent tax to electricity producers will be passed on to public and business consumers, whereas the 588 renewable energy facilities have far less revenue with which to amortize the tax. The Royal Decree approved by the Central Government which suspended premiums to renewable energy facilities left them without incentives.”