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Viewing cable 07MADRID1823, EMBASSY MADRID PROPOSAL FOR U.S.-SPAIN RENEWABLE

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Reference ID Created Released Classification Origin
07MADRID1823 2007-09-19 16:24 2011-08-24 16:30 UNCLASSIFIED Embassy Madrid
VZCZCXYZ0000
RR RUEHWEB

DE RUEHMD #1823/01 2621624
ZNR UUUUU ZZH
R 191624Z SEP 07
FM AMEMBASSY MADRID
TO RUEHC/SECSTATE WASHDC 3452
RHMCSUU/DEPT OF ENERGY WASHINGTON DC
INFO RHEHNSC/NSC WASHDC
RUEHRC/DEPT OF AGRICULTURE WASHDC
RUCPDOC/DEPT OF COMMERCE WASHDC
UNCLAS MADRID 001823 
 
SIPDIS 
 
SIPDIS 
 
STATE FOR EUR/WE, EUR/PGI, EEB, OES/EGC, OES/ENV, OES/OGC, 
OES/PCI, OES/PD 
DOE FOR SECRETARY BODMAN'S OFFICE 
DOE ALSO FOR EERE:KARSNER,MIZROCH,DICKERSON,CHIANG 
AGRICULTURE FOR JOHN NUTTAL 
COMMERCE FOR 3133/ITA/USFCS/OIO/EUR, 4211/ITA/MAC/EUR, 
6110/ITA/MAS/ENERGY 
PASS USAID FOR EGAT, EE 
PASS EPA FOR OIA:MARTIN DIEU 
PASS PRESIDENT'S COUNCIL ON ENVIRONMENTAL QUALITY 
 
E.O. 12958: N/A 
TAGS: BEXP ECON ENRG EINV KGHG KPAO SENV SP
SUBJECT: EMBASSY MADRID PROPOSAL FOR U.S.-SPAIN RENEWABLE 
ENERGY COOPERATION INITIATIVE 
 
 
1. Summary:  Consistent with our Mission Strategic Plan, 
Embassy Madrid is launching an initiative to increase 
linkages between Spanish and U.S. government and private 
sector leaders in the area of renewable energy.  Spanish 
firms are world leaders in renewable energy technology, and 
there is increasing interest among U.S. and Spanish officials 
in broad and deep cooperation on renewables issues.   One 
step we are considering is to organize a Spanish 
government/private sector delegation to Washington - possibly 
to participate in the USG-cosponsored March 2008 
International Renewable Energy Conference - and to Colorado 
for meetings at the National Renewable Energy Laboratory. 
Para 11 contains an Action Request for addressees to comment 
on post,s ideas and suggest additional ways to increase 
linkages.  End Summary. 
 
------------ 
Introduction 
------------ 
 
2. Building on a strong, mutually beneficial bilateral 
relationship, Embassy Madrid intends to deepen our level of 
cooperation with the GOS and the Spanish business community 
in the area of renewable energy.  As identified in Post,s FY 
2009 Mission Strategic Plan, collaboration on energy is a 
policy priority that the Mission is working to make a pillar 
of the bilateral economic relationship.  Spanish firms are 
among the world leaders in wind and solar technology, and 
there already are some bilateral investments in both 
directions. 
 
-------------- 
U.S. Interests 
-------------- 
 
3. A U.S.-Spain renewable energy cooperation initiative will 
support U.S. interests and policy goals by: 
- enhancing U.S. energy security, 
- advancing the President,s May 31 climate change initiative, 
- advancing the President,s "20 in 10" plan to reduce 
gasoline consumption by 20% over 10 years, 
- promoting economic growth and stability, 
- supporting the U.N. Framework Convention on Climate Change, 
the U.S.-EU Framework for Advancing Transatlantic Economic 
Integration and the establishment by 2008 of long-term goals 
for reducing greenhouse gas emissions, 
- demonstrating publicly the USG,s commitment to addressing 
climate change, and 
- providing commercial and economic benefits to both 
countries. 
 
-------------------------- 
Private Sector Investments 
-------------------------- 
 
4. The U.S. and Spain already enjoy strong energy 
collaboration within the private sector.  Over the past few 
years, the Spanish private sector has significantly increased 
its investment in the U.S. renewable energy industry.  These 
investments include acquisitions of a regulated U.S. utility 
company in Maine, wind generation capacity in Pennsylvania, 
West Virginia, Iowa, and Virginia, wind turbine manufacturing 
facilities, and one of the largest solar energy generating 
facilities in the world in Nevada.  New acquisitions and 
projects are announced frequently. 
 
5. While much of Spain,s foreign direct investment in the 
U.S. has been targeted toward wind power, other types of 
renewable energy are important in Spain as well.  Industry 
reports have named Spain the world,s most attractive solar 
market, with government subsidization of solar plants and new 
building codes requiring the use of solar panels on all new 
and renovated buildings nationwide.  With respect to 
biofuels, the GOS recently passed a new law making the 
E.U.,s non-binding target of 5.75 percent biofuel usage in 
transport fuels mandatory by 2010.  As a result, plans for 
numerous biodiesel plants within Spain have been announced 
recently.   Spain has also established a target of having 
 
12.1 percent of its total energy consumption come from 
renewable sources by 2010.  Spain,s expected failure to meet 
its 2012 Kyoto Protocol targets for CO2 emissions is likely 
to increase interest in renewables. 
 
----------------------------- 
Energy Cooperation Initiative 
----------------------------- 
 
6. Although private sector collaboration and investments are 
growing, the U.S. renewable energy market remains relatively 
underdeveloped.  Additionally, achieving both the USG,s and 
GOS, aggressive goals of reducing greenhouse 
gases and pollution, combating global climate change, 
increasing the use of biofuels and reducing the use of fossil 
fuel energy consumption will require significant 
breakthroughs in science and technology, according to the 
President,s Council on Environmental Quality.  Finally, 
local and national level environmental regulations are 
rapidly evolving in both countries. 
 
7. The Mission,s view is that by creating a dialogue and 
open exchange between various U.S. and Spanish stakeholders 
including government, industry, capital markets, and science 
and research communities, we can contribute to 
breakthroughs that lead to development of these additional 
opportunities in renewable energy. 
 
8. Our proposed U.S.-Spain renewable energy cooperation 
initiative will be concentrated in three primary areas: 
 
- Encouraging further private sector investment in the 
renewable energy sector in both countries, 
- Expanding the generation and consumption of renewable 
energy in both the U.S. and Spain, and 
- Encouraging additional science and technology research and 
development to achieve breakthroughs in our collective 
efforts to reduce fossil fuel energy consumption. 
 
--------------------------------------------- -- 
GOS Interest and Existing Bilateral Cooperation 
--------------------------------------------- -- 
 
9. GOS officials from several agencies, including the 
Ministries of Industry & Commerce, Foreign Affairs, 
Environment, and Housing, have expressed interest in greater 
US-Spanish cooperation on renewable energy issues.  Some 
government-to-government cooperation already is taking place. 
 For example, DOE,s National Renewable Energy Laboratory is 
discussing research with Spanish firms and institutions.  The 
Housing Ministry is negotiating with DOE,s Office of Energy 
Efficiency and Renewable Energy to bring to Spain a European 
version of DOE,s biennial Solar Decathlon competition in 
which university students compete to design and build houses 
powered by solar energy.  The Spanish university entry in 
this year,s competition has been visited by President 
Zapatero and the Ministers of Industry & Commerce and 
Environment.  Renewables also are an area of interest to U.S. 
state governments; Iowa,s governor visits Spain this week 
with a delegation.  The Embassy worked with the U.S. Chamber 
of Commerce of Spain and the GOS to organize an energy 
conference held in June that featured renewable energy and 
brought Department of Energy senior official Paul Dickerson 
as the keynote speaker and attracted senior executives of 
leading edge U.S. firms in the renewable industry to 
participate. 
 
------------------------------------ 
Next Steps and Request for Reactions 
------------------------------------ 
 
10. Post is seeking to increase linkages between U.S. and 
Spanish government officials and business leaders in many 
ways.  We are exploring the possibility of Spanish 
participation in the USG-cosponsored March 2008 International 
Renewable Energy Conference.  We hope to coordinate a Spanish 
government and private sector renewable energy delegation to 
the U.S., to be led by the American-Spanish Chamber of 
 
Commerce.  This visit could include participation in the 
March conference.  The delegation also could hold meetings at 
the National Renewable Energy Laboratory in Golden, Colorado. 
 We intend to incorporate a renewables segment into the next 
annual meeting of the U.S.-Spain Council, to take place in 
the first half of 2008.  We also hope to generate an 
agreement on bilateral cooperation, including on research and 
on encouraging investment between the two countries.  We also 
will seek to carry out an active public diplomacy program, 
including programming U.S. speakers to discuss the U.S. 
industry and federal and state regulatory issues. 
 
11. Action Request:  Embassy Madrid seeks reactions from 
Washington agencies to post,s proposed initiative.  Post 
also welcomes any suggestions for additional ways to increase 
linkages in this important area.  Points of contact who can 
provide additional information are Darren Perdue at 
PerdueCD(at)state.gov and James Dudley at 
DudleyJL(at)state.gov.  Post looks forward to working with 
addressees on this important matter.  End Action Request. 
LLORENS