Dalkia delays construction of 16-MW biomass power plant in Spain

Aug 6, 2012 - Dalkia, a joint venture of French utilities Veolia Environnement (EPA:VIE) and EDF (EPA:EDF), has delayed the construction of a 16-MW biomass power plant in the Spanish municipality of Cieza, due to the decision of the government to suspend subsidies for renewable energy companies.

The private investments in the renewable energy sector are blocked, due to the decision of the government to suspend subsidies in the beginning of 2012, the CEO of Dalkia in Spain, Jose Antonio Alonso said.

Dalkia keeps its commitment for the completion of the project after the new regulation in the sector is approved, he added.

The company planned to invest EUR 60 million (USD 74.2m) in the project and to open 300 direct jobs.

(EUR 1.0 = USD 1.238)

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