Spain
January 7, 2025

The Galician law mandating the repowering of wind farms at 25 years and the signing of local PPAs has been published

On January 6, 2025, the Official State Gazette published Law 2/2024 of Galicia, which establishes new regulations for renewable energy projects, including the mandatory repowering of wind farms and the requirement to sign PPAs with local companies, a move that has sparked controversy within the sector.
By Milena Giorgi

By Milena Giorgi

January 7, 2025
Capital Energy Galicia eólica

On January 6, 2025, the Ley 2/2024 de Recursos Naturales de Galicia was published in the Official State Gazette (BOE), finalising a legislative process that began in 2024 and faced significant opposition from the wind sector.

This regulation, approved by the Galician Parliament in November, introduces measures aimed at maximising the social, economic, and environmental benefits of projects utilizing natural resources, while strengthening Galicia’s leadership in renewable energy.

Ley 2/2024 includes both innovative and controversial provisions. On one hand, it mandates the repowering of wind farms over 25 years old, a requirement that has sparked resistance within the sector. On the other hand, developers will be required to allocate 50% of the energy produced to local SMEs and businesses through PPAs, promoting local involvement in energy development.

Key highlights of the regulation include:

  • Mandatory Repowering: Wind farms that have reached 25 years of operation or their “design life” must modernise their installations in order to maintain their operating permits.
  • Location Flexibility: Projects can be installed outside of the Wind Development Areas (ADE) under strict environmental criteria and with significant economic benefits for the region.
  • Compensatory Levy for Offshore Wind: The law establishes a levy to mitigate impacts on affected sectors such as fishing and to finance environmental conservation efforts.
  • Public Interest Declaration: Projects with significant investments or long-term contracts may be declared of special social and economic interest, facilitating their administrative processing.

Controversies and Criticism from the Sector

Despite its ambitious goals, Ley 2/2024 has stirred tensions within the renewable energy sector. The Spanish Wind Energy Association (AEE) warns that certain provisions, such as mandatory repowering, could discourage investment.

Juan Virgilio Márquez, CEO of the AEE, points out: “The forced modernisation after 25 years could lead to judicial disputes and hinder wind development in Galicia.” According to the association, more than 2,000 MW of installed capacity may be at risk of facing uneconomical administrative processes.

Another point of contention is the obligation to sign PPAs with local companies, which the AEE argues could breach European competition regulations and destabilise already signed international contracts.

Impact on the Wind Sector

The publication of the law comes at a time of legal uncertainty for the renewable energy sector in Galicia. Cautionary measures imposed by the Galician Superior Court of Justice (TSXG) and a preliminary ruling raised to the Court of Justice of the European Union (CJEU) have stalled over 2 GW of new wind projects.

“To ensure the sustainable growth of the sector, a stable regulatory framework is needed that does not discourage investment,” concludes Márquez, calling for a review and adjustment of the regulation.

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