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In addition to the 8% FiT cuts made in January, effective March 1 the Swiss Federal Department of Energy (DETEC) will further reduce the FiTs for PV power plants by 10% for new facilities.
Following consultations with stake holders and environmental organisations, the Greek Ministry of Environment has published new FiTs for PV installations, effective February 1. The tariff for PV systems up to 100kW and for systems installed on non-interconnected islands has been reduced by 12.5% compared to the previous rate introduced in 2009. The new tariff will be further reduced by 7% every six months until August 2014.
The Chinese Ministry of Finance has announced that it has changed certain FiT regulations, claiming this will speed up domestic large-scale applications of PV power generation and promote sustained and steady development of the PV industry. This will apply to grid-connected PV installations.
The abyss of debt Spain is currently tumbling into has come to the attention of the European Commission. Following the government’s decision to halt renewable energy subsidies due to an overwhelming debt owed to the industry, the European Commission feels that such a seemingly rash judgment could have a devastating impact on investment opportunities and therefore contrary to what the government wants to achieve.
In recent days amendments to the FiT in Italy come come thick and fast. Italian press agency Agi has reported that pro-solar associations in Italy are contesting the recent proposals to change the FiT, particularly in relation to PV greenhouses.
Spain has made the controversial decision to cease renewables subsidies for new solar, wind, co-generation and waste incineration plants in the face of an ever-growing government budget deficit of €24 billion. The power-system borrowings have been backed by the state but it appears that revenue generated by state-controlled energy prices has not been covering the high costs associated with delivering power, including the payment of renewables subsidies that have been put in place.
Following the amendment to the Quarto Conto Energia, GIFI, the Italian PV Industry Association, has said manufacturers are rising up to urge the government to repeal its decision on cutting FiTs for solar plants on agricultural land. Panic has spread through the PV manufacturing industry, where already financed projects will now not provide as much of a return as under the original legislation.
The Italian energy agency GSE (Gestore dei Servizi Energetici) has announced that large-scale PV plants will not be granted any solar subsidies in the second half of 2012 as the incentive volume was exceeded in 2011. This will lead to a shift in the development of market segments and result in the increasing importance of regional installers.
Over a year and a half ago, Japan brought its grievances against FiTs in the Canadian province of Ontario to the World Trade Organisation (WTO). The EU has now joined the fray and the WTO Dispute Settlement Body has committed itself to establishing a panel to hear the EU’s claims against the apparent discriminatory nature of Ontario’s FiTs. Formal panel proceedings, however, are not expected to start before the end of March.
German environment minister Norbert Röttgen continues his adamant refusal to cap new PV installations. However, perhaps in order to reach some semblance of a compromise and placate his Free Democrat coalition partners, he has suggested bringing forward reductions in the country’s FiTs by three months to April 1.
