MADRID, Feb. 4 Shares in Spanish renewable
energy firm Acciona fell on Tuesday, hit by draft rules
to determine subsidies for wind and solar energy technologies
that imply cutbacks for the sector.
The draft rules, sent to affected companies on Monday, set
the rate of return for existing renewable energy facilities at
7.4 percent and at 7.5 percent for future operations, versus
over 10 percent previously.
"The news is worse than expected, mainly for wind energy,"
Banco Sabadell said in a note to clients, adding that Acciona
was likely to be one of the worst hit.
Acciona shares lost 3.3 percent to 47.485 euros by 0940 GMT,
the biggest fall on Spain's blue chip index.
The measures are part of a sweeping government overhaul of
the energy sector to curb a 30 billion euro ($41 billion) power
tariff deficit, built up after years of policy that kept prices
below regulated costs that included green energy subsidies.
The new returns, which vary for over 1,000 different types
of technology - including wind, thermosolar, photovoltaic and
biomass - and year of installation, imply an overall cut in
subsidies to the sector of over 1.5 billion euros.
The new rates are based on a review by two independent
auditors and used Spain's 10-year government bond plus 300 basis
points as a reference.
Companies have 20 days to give their feedback on the new
rules, which have not yet been approved by the Spanish cabinet.
($1 = 0.7397 euros)
(Reporting by Tracy Rucinski; Editing by Mark Potter)