Posts Tagged ‘energy tax’

Spain to tax renewable energy

July 13, 2012

Yet another unwanted consequence of having subsidies in the first place.

First the Spanish Government encouraged a “renewables boom” by providing feed-in tariffs which were obscenely generous (about 4 times higher than the going rate) and irresistible to developers.  This was only one of the many acts of profligacy which has led to the current crisis.

And now the Spanish Government is to try and redress the balance by imposing “a levy to spread the expense of closing a gap between costs and revenue in the country’s electricity business, which has racked up debts of 25 billion euros” . Since the largest gap between true cost and revenue is of course with solar and wind plants they will be hardest hit by the levy.

Bloomberg:

(more…)


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