Iberdrola Halts Renewables Investments in Spain Amid Energy Crisis Fallout
September 29 2021 - 11:20AM
Dow Jones News
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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