Spanish Renewables down on subsidy cut fears

Shares in Spanish renewable energy generators Iberdrola Renovables, Acciona, and EDP Renovaveis move sharply lower after website elconfidencial says the government could be planning to cut lucrative pre-2009 renwables subsidies retroactively. "Potentially very negative. All sector sources we have been contacting over the last few months have always rejected to possibility of retroactive scenarios regarding the remuneration of the wind power sector in Spain" BPI says in a note to clients.

Elconfidencial cites sources close to the energy sector and government as saying that the government could reduce existing subsidies which finance most of the renewables plants in Spain in its new energy sector regulation, due in 2010.

Spanish industry ministry is not immediately available for comment.

Acciona falls 2.65 % to 81.88 euros, Iberdrola Renovables loses 2.53 % to 3.04 euros and EDP Renovaveis is 1.13 % lower at 5.68 euros, compared to a 0.33 % fall in the Stoxx 600 Utilities index. The negative sentiment also hits wind turbine maker Gamesa, down 1.88 % at 10.45 euros, compares to a 0.43 %t rise in the Stoxx Oil and Gas index.