The Spanish government will present a package of measures on Tuesday to control inflation, which has caused a drop in the shares of several renewable energy companies. Grenergy and Solaria are plummeting on the stock market, while the government considers reactivating the Iberian exception.
The shares of renewable energy company Grenergy have fallen by 10% on the stock market, while Solaria has seen a decline of more than 4%. These drops occur in the context of a new package of measures that the Spanish government will approve next Tuesday in the Council of Ministers to contain inflation generated by the war in the Middle East and support the most affected sectors, according to expansion.com.
The First Vice President and Minister of Economy, Carlos Cuerpo, has indicated that he has been in contact with social agents and affected sectors to define the best package of measures. The reactivation of the Iberian exception, a mechanism that limits the price of gas for electricity generation, has been requested by unions and other political actors.
The Iberian exception, authorised by the European Commission, was in force from June 2022 to December 2023, and aims to mitigate the impact of rising gas prices on energy costs. The General Secretary of CCOO, Unai Sordo, has emphasised the need to consider its recovery to reduce energy prices in Spain.
The drop in the share prices of Grenergy and Solaria also reflects fears of volatility in energy prices, which could compromise their future profitability. Additionally, rising interest rates may increase the financing costs for these companies.
On the other hand, Solaria is preparing to present its results for the first half of the year, where a profit of 42.3 million euros is expected, representing a 47% increase compared to the previous year, according to Bloomberg analysts.
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