Published by Global Banking & Finance Review®
Posted on April 6, 2026
2 min readLast updated: April 6, 2026
Add as preferred source on GoogleSpain’s wind industry warns that the EU’s proposed windfall tax on energy firms—prompted by soaring profits amid the Iran war—risks chilling new investment in renewables, particularly wind power, by undermining investor confidence.
MADRID, April 6 (Reuters) - Spain's wind industry association AEE warned on Monday that a proposed windfall tax on energy firms' profits could curb investment in renewable energy just as Europe seeks to cut its reliance on fossil fuels.
The criticism came after five EU countries, including Spain, put forward the proposal to tax excess profits earned amid energy price hikes triggered by the Iran war.
Reuters exclusively reported on Saturday that the finance ministers of Germany, Italy, Spain, Portugal and Austria jointly called for an EU-wide tax in a letter to the European Commission, saying the measure could help fund relief for consumers hit by high energy prices.
According to the AEE, renewable energy, particularly wind, has proven to be the most effective mechanism for keeping prices in check in Spain, one of Europe's leaders in the use of eolic power.
"Proposing new potential taxes that affect the electricity sector creates legal uncertainty and deters investors, precisely at a time when it is more necessary than ever to invest in technologies such as wind power as a substitute for imported fossil fuels," it said in a statement.
The AEE has more than 350 members including power utilities Iberdrola, Endesa, Acciona, Portugal's energy firm Galp, as well as developers, wind turbine manufacturers, consultants, financial institutions and insurers.
(Reporting by Emma Pinedo, editing by Andrei Khalip and Ros Russell)
The proposal is an EU-wide tax on excess profits earned by energy firms during recent energy price hikes.
The Spanish wind industry association AEE has warned about the potential negative impacts of the windfall tax.
AEE argues that it could create legal uncertainty and discourage investments in renewable energy.
Germany, Italy, Spain, Portugal, and Austria are among the countries backing the tax proposal.
Investment in wind energy is crucial as Europe seeks to reduce its reliance on imported fossil fuels.
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