Winds of Corruption
Getting Reputational Due Diligence Right in the Spanish Renewables Sector
Spain’s renewable energy sector is an indisputable European success story. In 2024, the country launched 54 new renewable energy projects, ranking third globally behind the U.S. and the U.K.
This rapid expansion of renewables has revolutionised the country’s energy mix, with renewable sources accounting for 56% of all electricity production in 2024.
This boom has attracted major international and domestic investors, creating a battleground for energy giants, oil companies and international investment funds, all vying for a stake in Spain’s renewable future.
Corruption Risks in the Spanish Renewables Sector
Despite Spain's rise as a renewable energy powerhouse, the sector remains tainted by a persistent issue affecting large infrastructure projects: corruption.
In 2015, a report from Spain’s tax agency revealed evidence of commission payments to expedite wind farm approvals in Castilla y León. Investigators estimated that €110 million in bribes were involved, implicating both major electricity companies and shell firms created to access public subsidies. The report also uncovered that some current and former regional officials held shares in newly formed companies that quickly received wind energy subsidies, only to later sell them at significant profits.
A 2024 report from Spain’s public procurement watchdog, OIReScon, highlighted that bid-rigging and bid allocation agreements continue to plague procurement processes in the country, especially in the construction industry.
These allegations raise concerns over whether bribes have been used to fast-track approvals for renewable projects.
For foreign investors entering Spain’s renewables market, involvement in a corruption scandal poses substantial risks. Beyond potential fines and legal entanglements, these allegations could damage a firm's reputation, with potential knock-on effects on its operations elsewhere.
To prevent this from happening it is vital that companies have in place effective reputational due diligence programmes to understand the risks associated with their potential business partners.
How Sagrada Due Diligence Can Help
At Sagrada Due Diligence, we conduct discreet, targeted interviews with professionals in the renewables sector as part of a comprehensive reputational due diligence screening service.
Our goal is to evaluate the background, reputation, track record, character, and credibility of any potential business partner, whether an individual or entity. We provide nuanced, context-rich intelligence to ensure informed decision-making.
For more information on how we can assist you in making informed decisions, visit our website.
www.sagradaduediligence.com