LONDON - Energy prices will have to rise if companies are to make the investments needed to cut carbon dioxide emissions, the head of Spain's biggest power group Iberdrola told Britain's Financial Times newspaper.
In an interview published in Wednesday's paper, the company's chief executive Ignacio Galan said consumers should "pay more (but) consume less," arguing energy bills were still a very small proportion of household costs.
He said the industry would have to make huge investments if it were to deliver the changes wanted by politicians, including the development of low-carbon generation such as wind and nuclear power, and equipment to raise energy efficiency such as "smart" grids and meters.
"Those things cost money. What is the price of energy needed? The one that will transform the energy mix in the country," he said, speaking on the sidelines of the Copenhagen climate talks.
"Unless the companies expect a proper return, no bank is going to invest, and the country is going to have a problem."
Galan said Iberdrola planned capital spending of about 4.5 to 5 billion euros next year, in line with this year's level but below last year's 6.7 billion euros.
He said the company, whose Iberdrola Renovables is the second largest wind power generator in the United States, has prioritised investment in renewables and spending on wind farms would continue at a rate of about 3 to 4 billion pounds a year.
"Our vision of this crisis is that we are trying to do our best to maintain our financial solidity in the middle of this storm," he said.
In an interview published in Wednesday's paper, the company's chief executive Ignacio Galan said consumers should "pay more (but) consume less," arguing energy bills were still a very small proportion of household costs.
He said the industry would have to make huge investments if it were to deliver the changes wanted by politicians, including the development of low-carbon generation such as wind and nuclear power, and equipment to raise energy efficiency such as "smart" grids and meters.
"Those things cost money. What is the price of energy needed? The one that will transform the energy mix in the country," he said, speaking on the sidelines of the Copenhagen climate talks.
"Unless the companies expect a proper return, no bank is going to invest, and the country is going to have a problem."
Galan said Iberdrola planned capital spending of about 4.5 to 5 billion euros next year, in line with this year's level but below last year's 6.7 billion euros.
He said the company, whose Iberdrola Renovables is the second largest wind power generator in the United States, has prioritised investment in renewables and spending on wind farms would continue at a rate of about 3 to 4 billion pounds a year.
"Our vision of this crisis is that we are trying to do our best to maintain our financial solidity in the middle of this storm," he said.
