'Energy dictatorship in Spain' [Spotlight @ PressTV]
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Spanish government halted subsidies for renewable energy projects to help curb its budget deficit and rein in power-system borrowings backed by the state that reached 24 billion Euros ($31 billion) at the end of 2011.
The government passed a decree stopping subsidies for new wind, solar, co-generation or waste incineration plants.
The system’s debts were racked up as revenue from state- controlled prices failed to cover the cost of delivering power.
Costs have swollen in the past five years because of an increase in regulated payments for the power grid, support for Spanish coal mines and subsidies for renewable energy plants.
Renewable energy companies fell on the Spanish action. Vestas Wind Systems A/S (VWS), the biggest wind-turbine maker, slid as much as 2.9 percent in Copenhagen. Abengoa SA, a Spanish engineering firm specializing in solar mirrors, dropped as much as 2.2 percent in Madrid and Iberdrola SA (IBE)