Solar Bankruptcy: Are Green Pensions Toast?

  • Date: 26/06/10

AP Pension, PensionDanmark and PBU, three Danish pension providers with assets totaling €30bn, have written to the Spanish government and the EU Climate Action Commissioner voicing their concerns about Spain changing the tariffs for its solar power industry retroactively.

The three providers, with some 700,000 members, have been investing in the Spanish solar power sector for the past two years as part of their socially responsible investments.

Through its consortium, Green Power Partners, the funds have committed to invest €100m in the renewable energy projects, including €25m in Spanish solar energy plants.

In their letter to Elena Salgado, Minister of Economy and Finance, and Miguel Sebastian, Minister of Industry, Tourism and Trade, the trio expressed their concerns about reports that the Spanish government may consider changing the structure and/or the level of feed-in tariffs that have been committed to the solar plants commissioned in the past three years.

Peter Olsson, chairman of Green Power Partners and head of property at AP Pension, said the move, if true, could spell the end of the renewal energy sector and cause huge damage for years to come.

“The sector needs government guarantees to be able to compete with the fossil fuel sector,” he said. “Nobody will have confidence in the sector if fixed, state-backed prices are changed retroactively.”

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