1. Initiating a sustained diffusion of wind power: the surprising role of public-private partnerships and business culture in Spain Dr. Valentina Dinica CSTM, University of Twente, Netherlands 21 February 2008

2. What was the crucial kick-off factor for wind diffusion in Spain?

3. Contextual factor leading to PPP formation in the early-diffusion phase: the high risk adversity of the business community

4. Wind power investments by partnerships in Spain: between 1990-1994, PPPs were responsible for around 80 % of the capacity installed Between 1995-2000, PPPs were responsible for 96 % of the installed capacity (of 2900 MW)

5. Legal instruments for RES power purchase Contract length and risk Price design and risksOther instruments in parallel, for wind: 1980 Energy Conservation Law no contract length mention- ed => high Contract risks No price mentioned; to be annually set by Ministry Order => high risk, political instability Investment subsidies good 1994 Electricity Law 5 year contract length (no details on renewal; in practice no conflicts) => lower contract risk perceptions Tariffs mentioned in royal decree; to be updated every five years; lower price risk perceptions Phasing out investment subsidies 54/1997 Electricity Law and 2818/1998 Royal Decree a) Tariffs b) Spot price + Premiums Tariffs & Premiums revised every 5 years by government. Investment subsidies just for very small projects

6. IDAE’s mediation between the political and business arenas contributed to: a de-facto reduction in the legal price support systems; and a reduction in the risk perceptions of the business community with regard to the political commitment for price support

8. Actors in partnerships PPPs for technology development and demonstration the governmental energy agency IDAE; manufacturers of wind technology (Made and Ecotecnia); energy companies: at that time they were still called energy utilities (Endesa and Union Fenosa) and to a lesser extent water utilities (in areas with water desalinization challenges); and regional and local authorities.

9. Project-vehicle PPPs for early commercialization Actor formula for each partnership! financing agent (bank / insurance comp.) a regional/local public authority IDAE a manufacturer of wind technology an energy utility sometimes also the land owner eventually another local/regional company

10. Wind-specialized and renewables- specialized partnerships Actor formula for most partnerships: an energy utility financing agent (bank / insurance comp.) an powerful industrial corporation a regional/local public authority or public company a manufacturer of wind technology eventually another local/regional company sometimes also the land owner

12. Summarizing my story of wind power diffusion in Spain: from public-private partnerships to confident private investors