The Spanish wind power industry is on a roll. Last year, a record 2,000MW of wind power were installed in Spain, pushing the country ahead of previous leader Germany in installed capacity for the first time. Of course, Spain has its fair share of strong winds, but outsiders might be surprised at the country's rapid rise to become the number one wind market. This, in turn, has created a sizable home-grown wind power industry employing more than 30,000 people. As well as Gamesa, the world's second-largest turbine manufacturer, Spain is home to more than 500 smaller companies making components. As the country's wind market matures, many of the wind farm operators and manufacturers are now exporting their technology.

"Wind energy is one of the great success stories of Spain, not just for the wind farm promoters but for the suppliers as well," says Stephen Taylor, head of Spanish operations at Ilex, the energy consultancy. He attributes the success to two factors: Spain's long-standing policy of paying a premium for electricity from renewable sources, which helps to subsidise the industry; and the key role played by Spain's regional governments, which see wind energy both as Asociaci-n Empresarial E-lica, the industry's trade body, claims that Spain's premium tariff policy is the most successful of the various subsidy mechanisms that other countries have tried for renewable energy. Experts say the success of the premium tariff policy lies less in the value of the subsidy - which some believe is now too high - than in the stability it provides. Because wind producers know how much they will be paid for their electricity many years int That makes it easier to make an investment case for a project and raise the finance. Unlike other energy projects, 80 per cent of the cost of a wind farm is paid for upfront. But it is not hard to find investors because, once built, a Spanish wind farm offers above average returns for minimal risk.