To cut or not to cut? Spanish solar feed-in tariff saga continues

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email

The Spanish feed-in tariff saga has moved another step towards conclusion, as the government joins solar power producers in forming an agreement for subsidy reduction and electricity price reduction, aiming at the same time to preserve the country’s renewable energy industry, reports Bloomberg.

A draft document released previously outlined talks between executives and government officials, which suggested that subsidies for plants already operating would be cut 10% to 15% over the next three years, compensated by three extra years of payments. An industry ministry spokesman has now confirmed the authenticity of this document and said the government will also seek deeper cuts.

Prime Minister Jose Luis Rodriguez Zapatero’s government wants to keep a lid on electric costs by paring back a 2007 law granting above-market prices for clean energy producers. The measures would hurt developers including Actividades de Construccion y Servicios and Abengoa.

“The details of the latest proposal don’t look as bad as the solar sector feared,” said Francesco D’Avack, industry analyst at Bloomberg New Energy Finance, London. “If the key points we’ve seen are adopted, it will be a big relief. They should prevent the great majority of projects from going under water, restore investor confidence and free up financing.”

Under the anticipated plan, operators of existing plants will receive 85% of the subsidy they already get in 2011 and 2012. In 2013, they would get 95%. These subsidies, due to run 25 years from 2007, will be extended three years beyond the current expiration date.

A further point the draft document presents is an option where developers could remain unaffected by the proposed temporary subsidy cuts by taking a cap on the number of hours their plants can earn above market prices. The industry ministry spokesman said the government is pressing to make that provision mandatory. Incentives for projects not yet built would be reduced 45% for those ground-mounted and 25% for roof-mounted.

These details were outlined in a leaked document received by Bloomberg News. The document was the basis for a meeting between government officials and industry executives on July 29; however no conclusion was made during this meeting. The final decision may run-on into September 2010 if an agreement can’t be reached by the beginning of August, an executive present at the meeting said.

 

19 October 2021
This year’s EV World Congress will hold a special role, not only as the first live EverythingEV event in over a year – a chance to renew your connections and re-engage with the EV sector face to face – but also as a chance to share insight and inspiration as world starts to look towards move on post COVID towards hitting ambitious decarbonisation goals in 2030 and beyond. As ever, we will be bringing world leading organisations, cities, and technology providers to the UK to inspire EV innovators, and delve into the challenges facing the sector as the UK looks to revolutionise road transport.
20 October 2021
Utility-scale solar is evolving, shaped by higher power modules and demand for increasingly lower levelised cost of electricity (LCOE). Those trends are also changing project requirements elsewhere, with inverters capable of delivering high power density and power capacity in strong demand. In this webinar, FIMER will detail how its innovative high-power, multi-MPPT string inverter and modular conversion solution can both meet those demands and transform the utility-scale solar sector for the better.
20 October 2021
The race is on but we need to sprint… With global climate talks fast approaching and time running out to prevent the most disastrous impacts of climate change, now is the time to act. The Summit will explore the opportunities that emerge from taking action on climate change and provide a clear pathway forward for governments, citizens and companies. Taking place just 10 days before the G20 meeting in Rome, on 30-31 of October, and in the lead up to the critical COP26 meeting in Glasgow from 31 October–12 November, this event will be instrumental in influencing ambitious global action.
10 November 2021
The solar tracker market continues to mature at breakneck speed, with designs and component selections becoming ever-more complex in the pursuit of better project economics. But a more simplistic design could deliver a triple benefit of lower Capex, EPC and Opex costs. This webinar will set out the ideal single axis tracker design for utility-scale solar farms. The design leapfrogs from decades of experience, with a comprehensive understanding and attention to the three cost structures of Capex, EPC and Opx. Sun and Steel Solar has prototyped a single axis tracker designed to deliver up to US$0.03/W in real savings compared to existing single axis trackers on the market. That’s US$30 million for every gigawatt deployed.
15 November 2021
The 10th edition of the famous Metallization and Interconnection Workshop, MIW2021, will take place in the Thor Central venue in Genk, Belgium, on Monday, November 15, and Tuesday, November 16, 2021 as a face-to-face meeting. We are longing for direct exchange of knowledge and ideas after a long time. Hopefully you can be part of it! But of course, the organizors will keep an eye on the evolution of the Covid pandemic. It will be assess carefully, whether the workshop can be held without major risks or excessive restrictions. We are looking forward to exciting talks, discussions and meetings and to welcoming you in Genk!
23 November 2021
The solar, storage and EV industries in the UK are going from strength to strength. There is no better place for the community to meet, share ideas and do business than Solar & Storage Live from 23-25 November at the NEC.There’s something for everyone; more than 150 exhibitors, a high-level conference, a start up and innovation zone, a poster zone, strategic partners to network with and much more. 

Read Next

October 19, 2021
Shortlisted bids in Saudi Arabia’s latest solar tender have jumped significantly on the lowest price recorded in the country’s previous renewables programme, reflecting the hikes in PV equipment costs in recent months.
October 19, 2021
The White House has said renewables are still key to its budget reconciliation bill despite rumours of the investment tax credit (ITC) being modified as opposition to the bill by senators Manchin and Sinema continue
October 19, 2021
Europe's energy crisis can be a boon for renewables deployment on the continent by bolstering business cases, but familiar foes such as grid constraints will still need to be hurdled in the coming years.
October 19, 2021
Solar tracker manufacturer Soltec has signed a framework agreement with renewables developer Acciona Energia to supply trackers over a three-year period.
October 18, 2021
Heterojunction cell and module manufacturer Meyer Burger has appointed a new CFO just one year after incumbent Jürgen Schiffer took on the role.
October 18, 2021
Italian grid operator Terna has acquired Italian solar O&M provider LT in a €24 million (US$27.8 million) transaction.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 19, 2021
BRISTOL, UK
Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021