The government insists that rules are “equal for Spaniards and foreigners”, that it has the power to change the law, and investors were looking for excessive yields.
InfraRed Capital Partners took part in two solar thermal energy projects in Spain (Seville and Badajoz) in September 2011, both of 50 mw. The move happened before launching the factories, built by Acciona and Idom. InfraRed guaranteed it would put forward financing worth €500M through equity and debt.
According to the concerned companies, the recently passed RoyalDecree about renewable energies, ends with legal safety and framework, as parameters may vary every three years andreasonable yield,every six years.
The flood of feedbacks – many of them with little grounds – were quick. Affected investors say 30% of photovoltaic projects will get cut by nearly 40% in expected revenues, which will make this project unable to face banking debt, unless they execute 20% haircuts. Others prefer to highlight the lack of legal safety.