Spain’s government accused of killing solar market

Facebook
Twitter
LinkedIn
Reddit
Email

The solar energy industry in Spain faces a spate of bankruptcies and job losses following the latest cut to support by the government, a coalition of trade associations in Spain has claimed.

The government has retroactively capped profits for the sector at 7.5% before tax, around 5-5.5% after tax. This rate is less than the rate that the sector is able to borrow at, leaving many facing bankruptcy.

This article requires Premium SubscriptionBasic (FREE) Subscription

Unlock unlimited access for 12 whole months of distinctive global analysis

Photovoltaics International is now included.

  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Unlimited digital access to the PV Tech Power journal catalogue
  • Unlimited digital access to the Photovoltaics International journal catalogue
  • Access to more than 1,000 technical papers
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

The retroactive plans “will lead many to bankruptcy because they won't be able to repay the credit that financed them”, according to a statement released by the Asociación Española de Productores de Energía Fotovoltaica (Anpier), Asociación de Productores de Energías Renovables (APPA), Asociación Española de la Industria Solar Termoeléctrica (Protermosolar) and Unión Española Fotovoltaica (UNEF).

Details of the €2.7 billion (US$3.5 billion) cost cutting for the energy sector announced last week, have left project developers, manufcaturers and consumers reeling.

Owners of solar power plants in Spain, which has more than 4GW of installed capacity, will be hit hard with months of uncertainty concluding with the government’s definitive changes.

Consumers will also be hit hard with increased levies on self-consumed solar energy now so high, that many will pay more for the electricity they generate themselves than they would for the regular grid power.

Responding to the changes for self-consuming customers UNEF said the changes ended any hopes for the survival of the domestic PV sector wasting the accumulated expertise and adding they would “close the door” on energy competition via distributed generation. The government owes money to the big five energy firms in the country.

Consumers have also been hit by a rise in electricity bills of 3.2%.

The Spanish government is faced with dire economic circumstances, compounded by a deficit in its energy budget of  €26 billion (US$34 billion).

According to The Economist, the country will still spend as much as €8 billion (US$10.5 billion) a year on renewable energy subsidies, even after the latest cuts.

Read Next

December 12, 2024
Australian trade association Clean Energy Investor Group has warned that the Environment Protection and Biodiversity Conservation (EPBC) Act has seen a doubling in decision-making periods from 2021 to 2023.
Premium
December 12, 2024
After experiencing a difficult year, China's PV equipment manufacturers need to find a better way to cooperate, writes Carrie Xiao.
Premium
December 11, 2024
PV Talk: Guy Turner describes the EU Emissions Trading Scheme as, in effect, a subsidy scheme that is driven by the market.
December 11, 2024
Indian independent power producer Juniper Green Energy has signed a 1GW module supply deal with US module manufacturer First Solar.
December 11, 2024
Consisting of three utility-scale solar projects in the central region of Lazio, the projects are expected to be operational by 2026.
December 11, 2024
Larger and thinner PV modules has contributed to increase breakages, although there is no single contributing factor, according to NREL.

Subscribe to Newsletter

Upcoming Events

Solar Media Events, Upcoming Webinars
December 12, 2024
9am GMT / 10am CET
Solar Media Events, Upcoming Webinars
December 18, 2024
9am GMT / 10am CET
Solar Media Events
February 4, 2025
London, UK
Solar Media Events
February 17, 2025
London, UK
Solar Media Events
February 26, 2025
Seattle, USA