STEAG GmbH files the 10th claim against Spain before the ICSID

The German company filed a request for arbitration against the Kingdom of Spain for loss of earnings caused by renewable energy policy changes on 21 January 2014.

The claim was presented by STEAG GmbH before the International Centre for Settlement of Investment Disputes (ICSID), a World Bank institution headquartered in Washington D.C.

According to the local media, STEAG GmbH will be represented by the law firm Clifford Chance. The company has a stake in Arenales PS, a 50 MW trough plant located in Sevilla.

This is the tenth claim presented by international investors before the ICSID against Spain over the regulatory changes affecting companies involved in renewable energy generation.

Similarly, it is the second claim presented against Spain in 2015. The first was filed by a consortium formed by nine companies, including eight German: Stadtwerke München GmbH; RWE Innogy GmbH; RheinEnergie AG; AS 3 Beteiligungs GmbH; Ferrostaal Industrial Projects GmbH; Ferranda GmbH; Andasol Fonds GmbH & Co. KG; Andasol 3 Kraftwerks GmbH and Marquesado Solar S.L. (Spanish).

STEAG GmbH’s claims follows applications for arbitration brought by British investment funds Eiser Infrastructure and InfraRed; the German institutional asset management body Deutsche Asset & Wealth Management; the French Antin Infrastructure Partners; the Saudi Arabian Masdar; the North American NextEra and the Mexican Renergy.

Solar and wind to become the most attractive technologies, IRENA’s report reveals

According to the Renewable Power Generation Costs in 2014 report issued by the International Renewable Energy Agency (IRENA), CSP and offshore wind “will play an increasing part in the future energy mix as costs come down.”

Although the organisation reckons both technologies are currently more expensive than conventional fossil fuel-fired generation options, it acknowledges that CSP and offshore wind are “in their infancy in terms of deployment,” leaving plenty of room for significant cost reductions in the years to come.

Furthermore, IRENA predicts that “solar PV, CSP and wind could be the most attractive technologies for future installations,” as other renewable energy technologies such as hydropower, geothermal and biomass-combustion “are now largely mature, with limited cost-reduction opportunities.”

The report also concludes that biomass, onshore wind, geothermal and hydropower “can currently all produce electricity in the same cost range or better than fossil fuels.”

However, IRENA suggests that any future reductions will be contingent upon factors like “balance-of-project, operations and maintenance and finance costs.”

U.S. fund GIP acquires a 24,4% stake in ACS’ renewable energy unit

U.S. private-equity fund Global Infrastructure Partners has agreed to buy a 24.4% stake in the Spanish builder ACS’ renewable energy unit, Saeta Yield S.A.

The Spanish company plans to sell its shares in Saeta Yield through an initial public offering (IPO). Therefore, the financial terms of the transaction will depend on the price ACS gets when it sells its shares through the YieldCo.

The deal between GIP and ACS is contingent upon the successful listing of Saeta Yield and on the authorization from competition regulators, ACS added.

Spanish media has reported that ACS is seeking a valuation of roughly EUR 1 billion (USD $1.16 billion) for the business. The company also said that GIP will acquire a 49% stake in a new company that will group renewable energy assets under development by ACS.

The company recently announced that it was planning to sell 51% of Saeta Yield, which owns 16 wind farms and three solar plants, with a total of 689 MW of installed energy generation capacity. The company will have a “right of first refusal” option to buy renewable energy assets under development by ACS, in Spain and elsewhere.

NREL report reveals the steady rise of solar power technologies

The National Renewable Energy Laboratory (NREL) released its latest report on U.S. and global renewable energy, titled 2013 Renewable Energy Data Book. The report reveals that “new renewable electricity accounted for over 61% of total new U.S. generation capacity in 2013”, in comparison “to just 4% in 2004 and 57% in 2008.”

The paper also points out that “renewable sources accounted for 23% of all electricity generation worldwide in 2013”. Interestingly, the report concludes that “in 2013 in the U.S., solar electricity was the fastest growing electricity generation technology, with cumulative installed capacity increasing by nearly 66% from the previous year.”

As for solar power technologies, the report states that “PV and CSP are among the fastest growing energy resources worldwide.” Globally, installed CSP capacity “rose by 81%, from 0.50 to 0.90 GW in 2013”.