WindEurope critizises new Spanish measure against wind farms

Wind Industry Profile of

The Spanish Government has introduced a new charge on wind farms and other non-polluting power plants to “compensate” for the higher revenue they say they’re earning as a result of higher wholesale electricity prices. They argue that high gas prices have driven up electricity prices, that wind farms don’t have to buy gas so they’re earning “windfall profits”.

This argument assumes that wind farms sell electricity at today’s so-called “spot” prices in the wholesale electricity market.  In practice, they don’t.  A lot of what they sell is sold at pre-agreed prices in fixed-term contracts.  Wind farms – and power utilities more broadly – hedge against low and high prices and forego the upside if high spot prices. The... ... More: Official Press Release WindEurope

Keywords:

WindEurope, Spain, EU Green Deal, undermine, government, charge, wind farm, non polluting power plants, revenue, electricity price, costs