Energy reform to erode 33% of thermal solar business of Abengoa
Sep 2, 2013 - Spanish renewables and engineering group Abengoa (MCE:ABG) sees revenues and earnings before interest, tax, depreciation and amortisation (EBITDA) of its thermal solar business to decline 33% in 2013 due to the recent energy reform.
The energy reform is asymmetrical, as it envisages higher reduction in premiums for renewable energy firms, and is totally unjust towards the thermal solar business, news agency EFE quoted the CEO of Abengoa, Manuel Sanchez Ortega, as saying.
Although admitting that the reform will eliminate the uncertainties in the energy sector by guaranteeing the profitability of thermal solar projects, Ortega complained that it had damaged much more seriously renewable energy investors than the ones in conventional electricity.
The power sector reform in Spain mainly targets to eliminate the EUR 4.5 billion (USD 5.949bn) tariff deficit expected for this year. The cost for companies will reach EUR 2.7 billion, while the government and consumers will absorb EUR 900 million of the costs each.