Spain

IEEFA Research

IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

Paying Producers for Electricity They Might Never Generate

  So-called capacity markets are driving what appears to be a major new trend in energy policy across Europe: More public subsidies for electric utilities. Utilities may get—but not necessarily need or deserve—high-level government support for a variety of reasons, including for their role in equity markets, where they supply returns and dividends for pension […]

December 13, 2016 Read More →
IEEFA Europe: Can Coal Power Hang On?

IEEFA Europe: Can Coal Power Hang On?

Investors May Not Be Eager to Absorb More Losses Like Those Seen in Recent Dutch Build-Outs

Investment in new coal-fired power plants appears off the agenda in Western Europe. Witness the astonishing write-down of brand-new assets in the Netherlands, where European utility giants RWE, Uniper, and Engie have drastically reduced their valuations of plants barely a year old (read the report we published this morning, “The Dutch Coal Mistake,” which concludes […]

November 30, 2016 Read More →

More News and Commentary

IEEFA Europe: The Cost of Wind-Powered Electricity Is Dropping

IEEFA Europe: The Cost of Wind-Powered Electricity Is Dropping

Trend in Onshore Pricing in Spanish, German Auctions Follows What’s Happening Offshore as Well

Onshore wind auctions in Spain and Germany last week confirmed the trend in the falling cost of renewables in Europe. The trend is being driven by a shift to auctions that are doing a better job of revealing the true cost of generation than former feed-in tariff schemes. Auctions are capturing real cost reductions in […]

May 31, 2017 Read More →

Spain Moves to Incentivize More Renewables

Bloomberg New Energy Finance: The government said it will pay 600 million euros ($633 million) annually to renewable and cogeneration power plants as it seeks to reassure investors and revive its clean energy industry. The country guarantees a “reasonable yield of 7.4 percent,” the Ministry of Industry, Energy and Tourism said in an e-mailed statement […]

March 3, 2017 Read More →

Spain’s Hidden €1bn Subsidy to Coal, Gas Power Plants

Megan Darby for ClimateChangeNews.com: Spain is propping up old coal and gas-fired power plants with payments for staying open, regardless of how much they generate. The support, worth €1 billion a year, is a needless burden on consumers, according to a report from the Institute for Energy Economics and Financial Analysis (IEEFA). It is likely […]

December 14, 2016 Read More →
IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

IEEFA Update: A Rush to Subsidies as Power Plants in Europe Face an Existential Threat

Paying Producers for Electricity They Might Never Generate

  So-called capacity markets are driving what appears to be a major new trend in energy policy across Europe: More public subsidies for electric utilities. Utilities may get—but not necessarily need or deserve—high-level government support for a variety of reasons, including for their role in equity markets, where they supply returns and dividends for pension […]

December 13, 2016 Read More →

IEEFA Report: Spain’s Outmoded Capacity Payment Structure Encourages Wasteful Subsidies for Coal and Gas, Thwarts Electricity-Sector Modernization

Reforms Should Include an Interconnected Grid, an Independent Regulator, and a More Transparent Market

Dec. 13, 2016 (IEEFA.org) – The Institute for Energy Economics and Financial Analysis (IEEFA) published a brief today showing how Spain provides inflated subsidies to owners of coal- and gas-fired power plants through an expensive electricity-sector capacity market. A dozen European countries, including France, Germany, Italy and the U.K., are either considering or already have […]

December 12, 2016 Read More →
IEEFA Europe: Can Coal Power Hang On?

IEEFA Europe: Can Coal Power Hang On?

Investors May Not Be Eager to Absorb More Losses Like Those Seen in Recent Dutch Build-Outs

Investment in new coal-fired power plants appears off the agenda in Western Europe. Witness the astonishing write-down of brand-new assets in the Netherlands, where European utility giants RWE, Uniper, and Engie have drastically reduced their valuations of plants barely a year old (read the report we published this morning, “The Dutch Coal Mistake,” which concludes […]

November 30, 2016 Read More →

Spain’s Push Toward 100% Renewables

Caroline Mortimer for The Independent (U.K.): The director of one of Spain’s top power companies has predicted the country will eventually become 100 per cent reliant on renewable energy. Acciona boss Miguel Ezpeleta said there is currently enough wind energy being generated to power 29m Spanish homes every day. He told Australian news channel, ABC […]

October 24, 2016 Read More →
Europe: ‘Capacity Payments’ Provide a Lifeline to Costly Coal-Fired Generators

Europe: ‘Capacity Payments’ Provide a Lifeline to Costly Coal-Fired Generators

U.K. Case in Point: Subsidies Prop Up Increasingly Unviable Generators 


Call them what you will but “capacity payments” in the European utility industry today are looking more and more like subsidies to prop up a fading industry threatened by the rise of renewables. It’s an expensive arrangement that often rewards decrepit coal- and other fossil-fuel-fired power plants for waiting in the wings—not for generating electricity. […]

June 15, 2016 Read More →