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Slew of Spanish Lawsuits Filed over Renewable Energy Reforms

Posted by September 23, 2014

Spain's Supreme Court has accepted at least 125 lawsuits so far this month from firms and individuals fighting energy reforms, official data showed, after the government changed the rules on investments in renewable projects and cut subsidies.

Spain has passed a series of measures in the past two years which have slashed and in some cases eliminated subsidies on renewable energy projects such as wind and solar-panel farms, capping potential profits for firms.

The government is trying to plug a multi-billion-euro deficit caused by a gap in regulated prices and costs.

However critics say the measures renege on the original terms of the contracts they had relating to renewable projects.

A decree passed in June, which set the level of the new subsidies for thousands of renewable energy projects, is the target of the dozens of lawsuits this month seeking financial compensation, according to data from the official state bulletin.

The Supreme Court accepting a lawsuit means that it was filed properly and that the court will now examine the matter further. It does not imply anything about the legal merits of the case.

Subsidiaries of Spanish energy firms Gas Natural and Elecnor, Portugal's EDP and paper companies such as Ence and Finland's Stora Enso are among those to have filed suits, the registry showed.

Local administrations such as the regional authority of southerly Extremadura, where many solar power projects were developed, and industry associations have also filed complaints.

Some foreign firms such as the United Arab Emirates' state-owned renewables company Masdar have also taken legal complaints to international courts over the measures, though Spain's government has shown little sign of reacting to the backlash.

Renewable energy subsidies in 2014 are projected to drop by 1.37 billion euros, or 15 percent, compared with 2013 levels, according to estimates from Spain's Industry Ministry.

(Reporting by Jose Elias Rodriguez; Writing by Sarah White; Editing by Julien Toyer and Pravin Char)

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