Where is Don Quijote when you need him?

Where is Don Quijote when you need him?


We’ve all seen them as we drive across the Alta Mesa in Spain. Row upon row of huge majestic wind turbines, silently (well almost) turning in the wind supplying carbon neutral electricity to surrounding towns and villages.But for how much longer? Read on............




There are concerns over retro-active cuts, being proposed by the Spanish Government, to the electricity “Feed – In Tariffs” applicable to wind-farms. These “Feed – In Tariffs” are what the Govt promises to pay to wind - farm owners for the electricity they produce to encourage new “green power” developments. The proposals threaten the viability of some of the smaller wind farms, and investment targeted for new projects is disappearing as fast as the money in my wallet on pay day. This has the potential of proving to be a disastrous blow to Spain’s eminence in Wind power technology. For a nation whose economy is already looking into the precipice of “financial meltdown” it is an ill – considered and self – defeating proposition. (* shakes head in utter disbelief at this govt initiative*)

But what is all the fuss about? What does this mean for Spain’s wind – power sector?

Well, for one, retro-active legislation has always been considered a “no-no”. Ordinary folk and businesses abiding by current laws and regulations, can, overnight, find themselves liable to pay back huge sums of money, or be told that they were acting illegally, because some “Johnny - come -lately” from Town Hall decides the new regulations will be back-dated. Reminiscent of the Local Council land - grabs in the Costas where previously approved building permissions were retro – actively denied and (mostly) expats suffered as a result. But that is the subject of another article.


Secondly, the tariffs have always attracted genuine state-of-the-art ventures (and a few “Mad Scientist” types to boot) that simply would not have been able to prove their design concepts without this Government assistance. Spain is recognised (along with Denmark – who would have thought it?) as a world leader in all things connected with wind – power electrical generation. This is a position that will become unsustainable without Government encouragement.

On the upside, Gamesa and “new-kid-on-the-Spanish-block” Vestas (the aforementioned Danish Connection) are showing strong financials and a very healthy overseas order book. These giants on the scene will survive all of the government’s machinations of course – “too big to fail” – but let the Fanny Mae and Freddy Mac debacle in the US housing sector serve as a warning! Of even greater concern is the possibility (threatened) that these 2 companies will simply up-root, Lock, Stock, and Barrel for foreign climes leaving an estimated 40,000 people employed directly in this sector facing an uncertain future.



This is indeed an “Ill wind that blows no good” for anyone, as I keep scanning the horizon for a somewhat eccentric tall Knight, sword in hand, faithful companion in his wake, to “Tilt at the Government”.........










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