Struggling to control its budget deficit, the Spanish government has been targeting ways to reduce feed-in tariff rates retroactively. However, information has surfaced that another option is to limit operating hours of PV plants. This could result in significant payment reductions to solar power plant owners and investors, especially since plans would include the majority of installations in the country, which took place between 2007 and October 2008. This would impact 3GW of installations.
The Spanish Secretary of State for Energy, Mr. Pedro Marín Uribe, has already met with the Spanish PV Industry Associations to discuss the move.
Concern is mounting that any retroactive decision would significantly impact the PV industry and investors and could influence other EU countries’ future support for solar energy. Any such move would result in legal proceedings against the Spanish government and could see legal action taken at the EU level as well.