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Regulatory cuts and economic and financial performance of Spanish solar power companies: An empirical review

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  • Ibarloza, Ander
  • Heras-Saizarbitoria, Iñaki
  • Allur, Erlantz
  • Larrea, Ainara

Abstract

Spain exemplifies the development of renewable energy in general and photovoltaic solar energy in particular, influenced to a major extent by public regulation. Without suitable caution regarding the approaching world crisis, the regulatory framework gave rise to the fact that Spain would rank second worldwide in 2008 in terms of installed photovoltaic (PV) solar energy. Yet a serious financial and economic crisis still in its infancy started to lead to readjustments, while the new regulatory framework put a stop to the construction of new PV plants. Many companies and investors either went bankrupt or saw their performance levels dwindle. Although the academic literature has analyzed some general aspects related to this boom-and-bust of the Spanish photovoltaic solar sector, no studies have been carried out on a company level. In order to fill this void, this paper analyses the economic and financial performance of Spanish companies involved in photovoltaic solar energy production over the period 2006–2015. The results, based on a longitudinal population sample of around 5469 companies from the sector, show the economic hardships they have experienced, especially smaller enterprises. An improvement in the most recent situation is also noted. The international implications of the Spanish case for scholars, policy makers, investors and other stakeholders worldwide, as well as avenues for further research, are discussed.

Suggested Citation

  • Ibarloza, Ander & Heras-Saizarbitoria, Iñaki & Allur, Erlantz & Larrea, Ainara, 2018. "Regulatory cuts and economic and financial performance of Spanish solar power companies: An empirical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 92(C), pages 784-793.
    • Handle: RePEc:eee:rensus:v:92:y:2018:i:c:p:784-793
    DOI: 10.1016/j.rser.2018.04.087
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    Citations

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    Cited by:

    1. Schabek, Tomasz, 2020. "The financial performance of sustainable power producers in emerging markets," Renewable Energy, Elsevier, vol. 160(C), pages 1408-1419.
    2. Sergio Coronas & Jordi de la Hoz & Àlex Alonso & Helena Martín, 2022. "23 Years of Development of the Solar Power Generation Sector in Spain: A Comprehensive Review of the Period 1998–2020 from a Regulatory Perspective," Energies, MDPI, vol. 15(4), pages 1-53, February.
    3. Fujii, Hidemichi & Managi, Shunsuke, 2019. "Decomposition analysis of sustainable green technology inventions in China," Technological Forecasting and Social Change, Elsevier, vol. 139(C), pages 10-16.
    4. Ángel José Ordóñez Mendieta & Esteban Sánchez Hernández, 2021. "Analysis of PV Self-Consumption in Educational and Office Buildings in Spain," Sustainability, MDPI, vol. 13(4), pages 1-16, February.
    5. Patricia Blanco-Díez & Montserrat Díez-Mediavilla & Cristina Alonso-Tristán, 2020. "Review of the Legislative Framework for the Remuneration of Photovoltaic Production in Spain: A Case Study," Sustainability, MDPI, vol. 12(3), pages 1-16, February.
    6. Raquel Fernández-González & Andrés Suárez-García & Miguel Ángel Álvarez Feijoo & Elena Arce & Montserrat Díez-Mediavilla, 2020. "Spanish Photovoltaic Solar Energy: Institutional Change, Financial Effects, and the Business Sector," Sustainability, MDPI, vol. 12(5), pages 1-18, March.
    7. Sabina Scarpellini & José Ángel Gimeno & Pilar Portillo-Tarragona & Eva Llera-Sastresa, 2021. "Financial Resources for the Investments in Renewable Self-Consumption in a Circular Economy Framework," Sustainability, MDPI, vol. 13(12), pages 1-17, June.
    8. Nikolaos Nagkoulis & Eva Loukogeorgaki & Michela Ghislanzoni, 2022. "Genetic Algorithms-Based Optimum PV Site Selection Minimizing Visual Disturbance," Sustainability, MDPI, vol. 14(19), pages 1-19, October.
    9. Castro-Rodríguez, Fidel & Miles-Touya, Daniel, 2023. "Impact of Spanish renewable support scheme reforms on the revenues of photovoltaic power plants," Utilities Policy, Elsevier, vol. 80(C).
    10. Mika Goto & Tadaaki Tomikawa & Toshiyuki Sueyoshi, 2024. "Efficiency and Mergers and Acquisitions of Electric Utility Companies," Energies, MDPI, vol. 17(8), pages 1-17, April.
    11. Zhang, Xinhua & Zhang, Qianqian & Dai, Zhifeng & Zhang, Xiaotong, 2023. "The impact of carbon markets on the financial performance of power producers: Evidence based on China," Energy Economics, Elsevier, vol. 127(PA).

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