The president of the CEOE, Antonio Garamendi, sees “logical” that there are electricity companies, such as Iberdrola, that have announced a stoppage of their investments in Spain due to “regulatory instability.”
The price of the wholesale market of electricity begins October unbridled and with another historical record: 216 euros / MWh
The statements of the employer’s leader take place when it has become known that Iberdrola has decided to paralyze the bidding processes in progress for goods and services associated with the construction of new renewable projects in Spain until a detailed evaluation of the economic viability of said projects after the shock plan approved by the Government to reduce the price of electricity.
The Integrated Energy and Climate Plan approved by the Government foresees investments worth 241,400 million euros between 2021 and 2030 that will be used, fundamentally, to promote renewables, saving and efficiency measures, and electrification and networks. 80% of these investments will be made by the private sector, while the remaining 20% will be investments from the different public administrations, including European financing.
Garamendi, in statements to TVE collected by Europa Press, has indicated that the financial markets, investment funds, savers and the electricity companies themselves, potential investors in this Plan, are seeing how “instability” is created in a market that needs a stable regulation.
The business leader recalled that more than half of the electricity bill are taxes and that, despite the tax cut that the Government has made on the receipt, this year it has collected more than 1,000 million euros for this concept.
Garamendi has pointed out that in other European countries the situation of energy generation is not the same as in Spain, since in France, for example, 70% of generation is nuclear and in Germany, almost 40% of production has its origin in coal.
“In Spain we have decided that nuclear power surpassed us and we have also put more taxes on them. Before we had 16 coal plants, now only one (…) We depend much more on the entry of gas and therefore on the volatility of that gas. market “, has warned Garamendi, who has mentioned some of the conflicts that right now surround that market, with Russia, China and the Algeria-Morocco conflict between them.
“What you have to see is how the competitiveness of the industrial company, which is very important, and stable regulation for the investment sector is combined,” said the business leader, who trusts that the experts are right and the rise in Energy prices only last two or three more months.