Renewable energy stocks surge after the Government draft, however the wind industry announces "a battle"

"Uncertainty (on the industry profitability) is gone, and the market likes this" said Mr Jaime Escribano, an Analyst at Banco Espírito Santo, to Reuters/EP. Abengoa's shares rised by 5.99%, Acciona's by 4,18% and Gamesa's by 2,4%.

However the wind industry members do not like the new feed-in tariff ranges, which change according to the price per MWh received and are lower than proposed. Neither do they like the Government's intention to apply this retribution framework to all facilities with retroactive effect, including the ones that were carried out years ago with other game rules.

According to the Industry Department, the draft guarantees a profitability of 7% to wind and hydro facilities opting for the regulated tariff, and between 5 and 9% if they take part in the electricity market.

As concerns biomass, biogas or solar electric thermal, the new regulation means a profitability of 8% for the regulated tariff and 7-11% in the market.

"Profitabilities proposed by the Government are in line with our estimates. They are the same, or even better than before, and this might have had a positive impact in these stocks", said the Analyst. Some other experts have highlighted that the growing trend in the market could have given an additional push to the industry.

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Renewable energy stocks surge after the Government draft, however the wind industry announces "a battle"