OEGA Collaborates with CMVMC Barbanza de Postmarcos in the Negotiation Process for the Repowering of the Barbanza I and II Wind Farms

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The negotiations between the Comunidade de Montes Veciñais en Man Común (CMVMC) Barbanza de Postmarcos and the company promoting the Barbanza I and Barbanza II wind farms took place over several months. OEGA acted as an external advisor, collaborating with the Board of Directors and with the team of lawyers hired by the community organization. During this period, the negotiations progressed constructively despite the initially distant positions of the parties. Mutual concessions allowed the signing of a final agreement that proved highly beneficial for both sides.

Below is a brief overview of the history of wind energy on the Barbanza Peninsula, particularly in A Pobra do Caramiñal, the municipality where the CMVMC is located.

Wind Power in the Region and in the Municipality

The Barbanza region, understood as the group of municipalities comprising A Pobra do Caramiñal, Boiro, Rianxo, and Ribeira, has a considerable installed capacity of renewable energy. There are four wind farms: Barbanza I, Barbanza II, Monte Treito, and the Singular Wind Park (Parque Eólico Singular, PES) of A Pobra do Caramiñal. Together they total just over 30 MW, with a total of 72 wind turbines. These turbines are of relatively small capacity: 65 of 0.33 MW, 6 of 0.85 MW, and 1 of 3 MW. The latter belongs to the PES of A Pobra.

If we focus exclusively on A Pobra do Caramiñal, the municipality currently hosts 41 turbines from the Barbanza I wind farm (five of which are shared with another municipality), 23 from Barbanza II, and the aforementioned PES, amounting to a total installed capacity of approximately 23.61 MW.

Wind Power in Postmarcos

Until 2024, the CMVMC lands hosted 29 wind turbines: 18 belonging to the Barbanza I wind farm and 11 within Barbanza II. Starting in 2024, the CMVMC regained full control of 12 turbines and shared ownership of five additional turbines with the CMVMC of Ribadeseira, in O Porto do Son.

In terms of power output, this represents 9.57 MW until 2024, increasing to 14.67 MW from that point onward.

Electricity Production and Revenue

Electricity production in A Pobra do Caramiñal and in the lands of the CMVMC Barbanza de Postmarcos was estimated for the period between 2001 and 2024 using the OEGA database. In the case of the CMVMC, the peak in production occurred in 2024 as a consequence of the newly recovered capacity. Until then, the highest level of production had been recorded in 2013.

In an average year, electricity consumption in A Pobra is around 68,000 MWh, according to OEGA estimates. Therefore, the wind energy production generated within the municipality would not be sufficient to cover total local consumption.

As can be observed, wind power revenue in A Pobra do Caramiñal represents a highly significant economic activity. In many years it exceeds €3 million, and in 2021 and 2022, due to the specific circumstances experienced in the electricity market, revenues reached extraordinary levels, surpassing €7 million in 2022. Meanwhile, on the lands of the CMVMC Barbanza de Postmarcos the operating company typically invoices amounts exceeding €2 million per year, reaching more than €3.5 million in 2022.

Wind Revenues Obtained by the Landowners of CMVMC Barbanza de Postmarcos

The Comunidade de Montes Veciñais en Man Común Barbanza de Postmarcos has had a lease agreement in place since 1995. This contract established the payment of an annual rent for the land owned by the community at a rate of 100,000 pesetas per wind turbine and associated infrastructure. Each year this rent is updated in line with the Consumer Price Index (CPI). The initial amount barely reached €20,000, and today, before the recovery of the new turbines, it stood at just over €30,000. These amounts represented a very small percentage of the total revenue generated by the wind farm, always below 2.5%, and in several years even below 1.5%.

The Board of Directors of the CMVMC Barbanza de Postmarcos has consistently expressed dissatisfaction with the payments, which it considered very small and unfair. Its treasurer, Lorena Muñiz, states: “What wind energy companies do with our lands is nothing short of robbery. They are entitled to make money, but exploiting their position, as many do, is entirely unacceptable.”

At the outset of negotiations for repowering the wind farm, both the Board of Directors and the Assembly of community members firmly stated their position: they were determined that the wind farm would remain on their lands, and they would not accept a negligible annual rent.

During the initial discussions between the Board and the Wind Observatory (OEGA), it became evident that the CMVMC needed to maintain a strong negotiating position due to contract timelines and because any renewal of the current agreement—which the company sought—could not be separated from the potential repowering process. Lorena Muñiz states:
“OEGA’s support was crucial at the start of negotiations with the company. They opened our eyes in ways no one had before.”

OEGA did not participate directly in the negotiations, as the CMVMC hired legal counsel to represent them in that process. However, the collaboration between those lawyers and OEGA helped shape the substance of the negotiation that was ultimately signed under conditions that were favorable for both parties.

The company secured legal certainty, social stability, and explicit support for its project from the CMVMC, the owner of the wind farm lands. In turn, the CMVMC obtained a very significant increase (80%) in its annual payments and a guarantee of minimum installed capacity (18MW) once the repowering takes place. Along the way, a few thousand euros in additional payments and the request for free electricity for local residents were set aside. Nevertheless, the final outcome strengthens the CMVMC Barbanza de Postmarcos and enables it to continue developing both productive and non-productive initiatives on its communal lands.