CSP World

Both companies have filed different lawsuits against Spanish government after changes enacted early this year in the regulatory framework have led to a significant decrease in revenues from the renewable energy business.

During the World Biofuels 2013 conference held in Seville, Abengoa’s CEO Manuel Sanchez Ortega confirmed that the company has initiated legal actions against Spain’s government as a response to new regulatory framework.

Sanchez Ortega did not confirm what kind of legal action is conducting, nor if it is being carried out jointly with some other companies although, “there are many companies with similar interests, therefore you can imagine these companies are in talks”, he said.

Abengoa’s CEO preferred not to comment about a leak regarding a supposed proposal to shut down some plants, including gas and Concentrated Solar Power plants, for some four years.

Moreover, Acciona filed last May, 14 a lawsuit with Supreme Court against the ‘Ministerial Order’ where the Feed-in-Tariff for 2013 were published, according to Spanish business media Invertia.

The ‘IET/221/2013 Ministerial Order’ includes the FiT for all renewable energy producers after the measures that have changed the regulatory framework were enacted.

Last April, as CSP World reported it, some companies involved in the CSP business had decided to take joint legal action by signing an appeal against the ministerial order. Acciona was not among the companies involved but expressed fully support to the initiative.

International investment funds with shares in Spanish CSP plants are also preparing lawsuits against Spain’s government. A few weeks ago, CSP World reported that these funds have hired Allen & Overy to take Spain to international arbitration courts.

Regulatory framework

The regulatory framework for renewable energy generation in Spain was mainly established under the Royal Decree 661/2007.

• Feed-in-Tariff with fixed tariff option: 26.9375 c€ per kWh
• Feed-in-Tariff with pool+premium option: 25.4 c€ per kWh + pool price* (with a cap: 34.3976 c€ and a floor: 25.4038)
• Period: 25 years
• FiT is updated annually according to Consumer Prices Index
• CSP plants allowed to burn natural gas (15% max)

New regulatory framework effective since January 2013

• FiT with pool+premium option has been withdrawn
• FiT is updated with a different index (this year has been negative, FiT for 2013 is 29.8873 c€ per kWh)
• Generation attributable to burning natural gas is not included in the FiT
• 7% tax over all revenues