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Sale of profitable but unaffordable PV plants in Spain: Analysis of a real case

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  • Lomas, J.C.
  • Muñoz-Cerón, E.
  • Nofuentes, G.
  • de la Casa, J.

Abstract

The Spanish photovoltaic industry was stunningly successful during 2007–2010, fostered by a favourable feed-in tariff system. Nevertheless, the cost overrun of this promotion policy led to government legislation against existing PV plants. Although these investments will be profitable when the subsidy ends, according to the last law enacted in Spain (IRR = 7.4%), either a massive sale to vulture funds or the abandonment of PV plants is being planned. Owners are unable to cover the loans through which they were originally financed. In this scenario, investors find it more profitable to cancel all operational expenditures and allocate this working capital to cover their loans, although this measure implies a 22% energy reduction.

Suggested Citation

  • Lomas, J.C. & Muñoz-Cerón, E. & Nofuentes, G. & de la Casa, J., 2018. "Sale of profitable but unaffordable PV plants in Spain: Analysis of a real case," Energy Policy, Elsevier, vol. 117(C), pages 279-294.
    • Handle: RePEc:eee:enepol:v:117:y:2018:i:c:p:279-294
    DOI: 10.1016/j.enpol.2018.03.014
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    6. D. L. Talavera & E. Muñoz-Cerón & J. de la Casa & D. Lozano-Arjona & M. Theristis & P. J. Pérez-Higueras, 2019. "Complete Procedure for the Economic, Financial and Cost-Competitiveness of Photovoltaic Systems with Self-Consumption," Energies, MDPI, vol. 12(3), pages 1-22, January.
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