Wed, Mar 25, 2009 - Page 9 News List

Clean energy, dirty money

The arrest in Spain of 19 people for corruption highlights the less admirable side of a booming trade in renewable fuel

By Giles Tremlett  /  THE GUARDIAN , MADRID

Powerful wind turbines churned the air above La Muela last week, but the stir in this small Aragonese town was caused by the arrest of the mayor and 18 other people on charges that reveal a new phenomenon in Spain: eco-corruption.

Windswept La Muela, with its 500 giant windmills, has become one of Spain’s richest towns on the back of what is the new gold for rural communities: renewable energy. Eight years ago, the wind energy companies that provide up to 40 percent of Spain’s electricity on blustery days came looking to plant their turbines. These now line the hills outside the town and form neat patterns across the plain.

Generating companies pay 1 million euros (US$1.34 million) a year to the town hall in rent and taxes. Private landowners, many of whose families worked the hard, unforgiving land for centuries, share a further 500,000 euros a year. Planting windmills has proved far more lucrative than cultivating crops. Each brings in about 3,000 euros a year to the landowner.

The wind energy boom brought with it a frenzy of development as the town’s population increased three-fold. With wind power pouring euros into the municipal coffers, colossal building schemes were pursued. The 5,000 residents now share three museums, a theater, a bull ring and a gleaming sports and swimming center.

The mayor, Maria Victoria Pinilla, who denies any wrongdoing, showered townsfolk with money. She subsidized holidays to Cancun in Mexico, to Brazil and to the Caribbean beaches of Santo Domingo.

She herself was among those to prosper. A plot of land she owns now contains three smart new houses for herself and her two sons, one of whom was also arrested last week.

In a pattern repeated in several Spanish towns recently, Pinilla’s arrest provoked indignation — not at her but with the courts and the police.

“She has done fine things for La Muela,” one local told the television cameras. “People are just envious.”

Others were not so supportive.

“She has been making fools of us for 22 years,” said 42-year-old Asuncion Gimeno.

The magistrate investigating the case yesterday sent La Muela town councilor Juan Carlos Rodrigo to jail to await trial. The same judge was expected to interrogate Pinilla on Sunday and decide if she, too, should be held in custody.

While it was the construction boom that accompanied the wind turbines that led to the arrest of Pinilla and other officials alleged to have demanded backhanders, the renewable energies explosion was already leaving a footprint of sleaze elsewhere in Spain.

A judge in the Canary Islands last week accused a former local industry department chief, Celso Perdomo, of making millions of euros by selling secret information on land about to be earmarked for the wind industry.

Inspectors are also busy looking at a sudden boom in solar farms, where subsidies assuring a 12 percent annual return on investment over 25 years sent Spain’s notoriously corrupt real estate developers into a frenzy.

In many ways those subsidies were a spectacular success. In three years Spain built about 29,000 solar “gardens” to become the world’s second-largest producer of solar power after Germany. In 2004 it took three months to install 2 megawatts; by last year the same amount was being installed every day. The sector grew ninefold over two years as stretches of countryside disappeared under shiny black panels.

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