Spanish renewables industry breathes sigh of relief at modest incentive cuts

Shares in Spain's largest wind and solar energy firms climbed yesterday, after the renewable industry reached a deal with the Spanish government that should result in lower-than-expected cuts to subsidies.

Shares in the renewable energy arm of Spanish energy giant Iberdrola rose 7.9 per cent, while rival energy firm Acciona SA saw its share price climb 6.5 per cent. The renewable energy division of Portugal's EDP-Energias de Portugal SA, which operates wind farms in Spain, saw its share price climb by more than seven per cent.