Spanish region approves mandatory wind turbine upgrade, sparking industry outcry

By Pietro Lombardi

MADRID (Reuters) - Wind parks operating in the Spanish region of Galicia will be obliged to replace ageing turbines after 25 years under a package of measures approved by the regional parliament on Tuesday, sparking an outcry from the renewables industry.

Under the rules which come into force on Jan. 1, developers risk losing their operating permits unless they begin replacing 25-year-old turbines with new, more efficient and taller wind mills.

Critics say the measure - the first of its kind to be approved in Europe - jeopardises the development of essential renewable projects and increases legal uncertainty.

When to upgrade assets has always been a decision taken by developers, industry association WindEurope told Reuters.

The rules will hinder the sector, increase litigation and fragment the market, Spanish wind lobby AEE and other industry groups said in a joint statement.

The package also contains temporary provisions for new parks to sell part of the energy they produce to local industries via long-term contracts known as power purchasing agreements.

These temporary measures will remain in place until Galicia updates its wind power plan, a process expected to take three years, Nicolas Vazquez, the regional government's industry secretary, told Reuters.

Vazquez defended the measures which he described as "proportional" and in line with the permits originally granted to developers.

The 25-year threshold will be the start of a flexible process that will take years, so no wind park will be dismantled before it turns 31 or 32, he said. If unfeasible for technical or environmental reasons, the process will not go ahead, he added.

The measures on power purchasing agreements are less stringent than some previous provisions and only apply to new projects, Vazquez said.

The regional government expects some 3,000 turbines to meet the upgrade requirements in the next five years.

(Reporting by Pietro Lombardi; editing by Charlie Devereux and Christina Fincher)