Spain returning to the fold after barren years

Written on 24 Jan 2017

Osborne Clarke are proud sponsors of inspiratia’s riskWatch which assesses the risk of investing in renewables energy projects in the most active markets globally. Please see below an extract from inspiratia’s latest report on the Spanish renewables market.

Spain is back on the radar for renewables investors. Spain’s riskWatch score has increased from 48.50% to 52.50%, with a positive outlook for the next 12 months thanks to the announcement of 3GW tender for new renewables capacity, a decrease in regulatory risk, an improving political landscape and better macroeconomic fundamentals. However, Spain needs to avoid repeating the effects of the January 2016 tenders, when fierce competition caused prices to reach such low levels that the economic viability of the winning bidders is being called into question

On 29 December 2016, the Spanish government announced a tender for 3GW of renewables capacity through a system of technology-neutral competitive auctions. Further details are to be released imminently, but it is expected that there will be 1.4GW of solar PV, 1.4GW of onshore wind and 200MW of other technologies. The tender is due to take place in Q1 2017, with projects to be operational by 31 December 2019.

Meanwhile, Spain’s economy is embarking on a path of steady recovery, as shown by the encouraging 3.2% GDP growth rate and declining unemployment levels. The government headed by Mariano Rajoy is focused on stability, after a 10-month political deadlock that ended in October 2016, during which Spain only had a caretaker cabinet.

So what are the policy and regulation, project drivers, macroeconomics and politics driving change in Spain? Please contact Osborne Clarke’s expert below to request a full copy of the inspiratia report.

About inspiratia: inspiratia provides real-time data, forward-looking analysis, and timely market news relating to global infrastructure and renewables sectors.