Iberdrola Halts Renewables Investments in Spain Amid Energy Crisis Fallout

   By Mauro Orru

Iberdrola SA has halted investments in renewables projects in Spain after the country's government adopted a series of measures aimed at curbing energy bills for consumers, the company told The Wall Street Journal Wednesday.

"Iberdrola has decided to halt ongoing bidding processes for goods and services associated with the construction of new renewable projects in Spain, until a detailed assessment of the economic viability of such projects has been carried out," the Spanish energy company said in a letter to its suppliers.

The announcement comes just weeks after the Spanish government passed a decree that will effectively enable it to claim back 2.6 billion euros ($3.04 billion) by the end of March next year from energy companies that are profiting from soaring gas prices.

The package, aimed at reducing monthly electricity bills for consumers by 22% until the end of the year, includes temporary tax cuts on electricity and a cap on windfall profits booked by power utilities.

The latter measure seeks to prevent utilities from booking profits by charging higher prices for energy, potentially denting profitability at some renewable-energy facilities when factoring operational costs.

Natural gas prices world-wide have soared amid higher-than-expected demand, spurred by the global economic rebound. This has led to a steep rise in consumers' energy bills in several countries.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

September 29, 2021 11:05 ET (15:05 GMT)

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