Sustainability, investment strategy, and governance: evaluation of wind energy sector in North-West Spain

Figures & data

Figure 1. Wind farm locations in Galicia. Source: Own elaboration. Data from (OEGA: Observatorio Eólico de Galicia, 2021).

Figure 2. Average wind speed and protected natural areas in Galicia. Source: Own elaboration. Data from (IDAE, 2021).

Table 1. Installed energy capacity in Spain and Galicia.

		Spain (MW)	Galicia (MW)	Galicia as a % of Spain total
2010	Non-renewable energies	69,975.00	6,514.00	9.30
	Renewable energies (except wind energy)	41,797.00	5,045.00	12.08
	Wind	20,203.00	3,285.00	16.30
	TOTAL	104,479.00	10,949.00	10.50
2011	Non-renewable energies	69,050.00	6,596.00	9.60
	Renewable energies (except wind energy)	15,412.00	1,142.00	10.00
	Wind	20,763.00	3,287.00	15.80
	TOTAL	105,225.00	11,025.00	10.50
2012	Non-renewable energies	67,996.00	6,199.00	9.10
	Renewable energies (except wind energy)	16,675.00	651.00	9.95
	Wind	22,618.00	3,313.00	14.60
	TOTAL	107,288.00	10,665.00	9.90
2013	Non-renewable energies	67,977.00	3,304.10	8.30
	Renewable energies (except wind energy)	17,063.00	654.00	10.30
	Wind	23,001.00	3,320.00	14.40
	TOTAL	108,041.00	10,915.00	10.10
2014	Non-renewable energies	67,659.00	3,304.18	8.46
	Renewable energies (except wind energy)	17,140.00	1,193.00	10.23
	Wind	23,020.00	3,334.00	14.50
	TOTAL	107,819.00	11,005.00	10.20
2015	Non-renewable energies	54,830.00	3,854.00	10.50
	Renewable energies (except wind energy)	28,060.00	3,807.00	12.55
	Wind	23,029.00	3,334.00	14.50
	TOTAL	105,919.00	10,995.00	10.40
2016	Non-renewable energies	53,898.00	3,841.00	10.78
	Renewable energies (except wind energy)	28,073.00	3,809.00	12.50
	Wind	23,064.00	3,334.00	14.50
	TOTAL	105,035.00	10,984.00	10.50
2017	Non-renewable energies	53,406.00	3,837.00	10.74
	Renewable energies (except wind energy)	28,085.00	3,814.00	12.50
	Wind	23,057.00	3,343.00	14.50
	TOTAL	104,549.00	10,994.00	10.50
2018	Non-renewable energies	52,922.00	3,837.00	10.82
	Renewable energies (except wind energy)	28,142.00	3,852.00	12.60
	Wind	23,149.00	3,412.00	14.70
	TOTAL	104,212.00	11,101.00	10.70
2019	Non-renewable energies	52,532.00	3,834.00	10.94
	Renewable energies (except wind energy)	31,451.00	3,911.00	15.10
	Wind	24,306.00	3,804.00	15.60
	TOTAL	108,289.00	11,549.00	10.70

Source: Own elaboration. Data from (Red Eléctrica de España, 2020b).

Table 4. Types of investments required.

Investment	Concept	Value (€)
Terrain	Construction of accesses to the wind farm	258,176.13
	Earthworks for roads	1,046,021.72
	Earthworks for footings	559,023.82
	Earthworks for platforms	921,993.45
	Land restitution	447,793.05
	Foundations and screeds	982,342.98
	Drainage, piping, and signaling	374,648.85
		4,590,000.00
Technical facilities	Medium voltage grid	255,426.48
	Grounded grid	127,508.51
	Communication grid	114,258.10
	Interconnection center	1,963,381.34
	Voltage measuring unit	61,417.19
		2,521,991.62
Other facilities	Aero transformer station type OL +1 L + 1P (x11)	658,056.52
Machinery	Wind turbines (x11)	28,924,451.86
Other fixed assets	Individual and collective protection equipment	95,500.00
	Total	36,790,000.00

Source: Own elaboration.

Table 2. Balance sheet structure.

Initial assets	Equity and liabilities
Land and Natural Assets	Capital Contributions
Technical Installations	Total Stockholders’ Equity
Other Facilities	Loans
Machinery
Other Property, plant, and equipment	Total Non-Current Liabilities
Accumulated Depreciation
Total Non-Current Assets	Suppliers
Customers
Treasury	Total Current Liabilities
Total Current Assets
Total assets	Total liabilities

Source: Own elaboration.

Table 5. Financial expenses at the beginning of the activity of the company.

Concept	Value (€)
VAT of investment in fixed assets	1,930,000
Interest in the construction period	2,580,000
Interest in credit policy	190,000
Interest in VAT financing	190,000

Source: Own elaboration.

Table 3. Structure of an income statement.

Operating income	kW/h generated
	Premium
Maintenance costs External services	Insurance premium
	Agent-Seller Cost
	Cost of the energy forecasting system
Wages and salaries
Tributes
Incorporation and First Establishment Expenses
Various
Depreciation and amortization charge
Operating Results
Financial expenses
Income before taxes
Taxes
Net income

Source: Own elaboration.

Table 6. Terms and conditions of external financing resources.

	Long-term loan	Credit facility
Amount	€25.7 mill.	€3.7 mill.
Interest rate	5% /year	5% /year
Provisionpla	During the first year of the project	During the first 5 years of the project
Period	15 years	5 years
Shortage	24 months from the beginning of the construction of the wind farm
Interest payment	Quarterly	Quarterly
Depreciations	Quarterly
Opening commission	1%

Source: Own elaboration.

Table 7. Cost of the provisional operating accounts.

Cost type	Cost evaluation
Billing cost per production	3.5 €/MWh (years 1 and 2) 6 €/MWh (year 3) 7% of turnover (years 4-20)
Other additional operating and maintenance costs	1,3% of annual production
Depreciation of the wind power farm	Depreciated at a constant rate over 15 years
Management and administrative costs	2% of annual production
Land rental	3.000 €/MW (year 1) 3.000 €/MW + 2% annual (years 2-20)
Insurances	84.805€/ year
Wind power production fee	45.100 €/year
Tax on electricity generation	7% of annual generation turnover

Source: Own elaboration.

OEGA: Observatorio Eólico de Galicia. (2021). Energía eólica en Galicia. https://observatorio.eolico.webs.uvigo.es/energia-eolica-en-galicia/?lang=es

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IDAE. (2021). Estudios, informes y estadísticas. https://www.idae.es/informacion-y-publicaciones/estudios-informes-y-estadisticas

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Red Eléctrica de España. (2020b). REData—Potencia instalada | Red Eléctrica de España. https://www.ree.es/es/datos/generacion/potencia-instalada

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