Iberdrola has halted investments in its new renewables projects in Spain, after the Spanish government adopted measures aimed at curbing energy bills for consumers.
In a letter to its suppliers, confirmed to reNEWS, Iberdrola said it has decided to “halt the ongoing tender processes for goods and services associated with the construction of new renewable projects in Spain, until a detailed assessment of the economic viability of these projects has been carried out”.
The news was reported by The Wall Street Journal.
The company’s letter stated it made the decision as a result of a first analysis of the impact that RDL 17/2021 has on the profitability of renewable installations.
Projects with a recognised remuneration framework (auctions/RINV) are excluded from this communication, said Iberdrola in the letter.
Several weeks ago the Spanish government passed a decree that will effectively enable it to claim back €2.6bn by the end of March next year from energy companies that are profiting from soaring gas prices.
The package aims to reduce monthly electricity bills for consumers by 22% until the end of the year.
It includes temporary tax cuts on electricity and a cap on windfall profits booked by power utilities.