Spain feed-in tariff cuts: new photovoltaic solar power plants to be chopped by up to 45%

August 2, 2010
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Following the news at the close of last week that Spain was edging ever-closer to the threat of feed-in tariff cuts, the country’s industry ministry has now announced that it plans to cut the subsidized electricity prices paid to new photovoltaic solar power plants by up to 45%, reports the Financial Times.

The ministry has said that guaranteed prices for large, ground-based new PV plants would be cut by 45%, while those for large roof installations would drop 25% and for smaller ones by 5%.

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“These percentages reflect the improved technologies and cost reductions that have occurred in the photovoltaic sector, which suggests the gains should be transferred to consumers while allowing attractive rates of return for investors,” the ministry said.

On July 30, the Photovoltaic Business Association (AEF) criticized the Spanish government, saying it had failed to accept various proposals by investors during three months of talks, even though some of the plans entailed substantial financial sacrifices.

Juan Laso, AEF president said, “This insecurity is keeping us in a state of paralysis.”

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