Spain cuts subsidies for Wind Energy and Concentrating Solar Power

Premiums for wind energy will be reduced by 35% until January 1, 2013. For its part, will prevent the access of solar thermal power plants to the market for a year of operation.

The Ministry of Industry, Tourism and Trade has closed with the employer’s wind energy and solar thermal, Spanish Wind Energy Association (AEE) and Protermosolar, respectively, two agreements for the review of regulatory frameworks for electricity generation with wind turbines and solar thermal power plants .

The agreement means that wind and solar power receive less than 1,300 million euros. Premiums for the special regime in 2009 exceeded 6,200 million, of which more than 4,700 million corresponded to renewable energy, primarily solar photovoltaics.

This support helped the tariff deficit exceeded the 4,600 billion in 2009, exceeding the target of 3,500 million raised by the Government.

Premiums for wind energy will be reduced by 35% until January 1, 2013. For its part, will prevent the access of solar thermal power plants to the market for a year of operation, having to access a regulated rate on small claims.

It also limits the number of hours with the right to remuneration on the market price of wind farms and and solar thermal power plants, taking into account the different technologies and the provisions of the 2005-2010 Renewable Energy Plan for the calculation of profitability of the facility.

After several months of negotiation, both parties have reached agreement on a reform that caused heavy losses in the wind energy sector listed companies, affected by the paralysis that has resulted in the registration.

The agreements include short-term measures that will reduce the impact of wind energy and solar power on electricity prices, as well as long-term measures with these technologies that will provide stability and certainty for its future development.

Prevention of access of solar thermal power plants to the market option + premium for one year of operation, which may only access the regulated rate specified in RD 661/2007, of less importance.

The agreement reached with employers wind additionally includes a special call 160 megawatt experimental wind turbines technology, which counted in the quota of 2012 as well as a special call for certain wind farms, whose combined capacity totals 300 megawatts, having won the record of the service before April 30, 2010, were not enrolled in the pre-registration.

These facilities must choose between selling to the market (pool price) since the entry into force of new regulations and collect fees from January 1, 2012 or otherwise, to sell to market (pool price) since the entry into force of new legislation and collect more bonus pool from 1 January 2013.

Finally, it provides for the introduction of a control of the Administration on changes in ownership of wind farms during the first four years of construction and operation and guarantees the repayment of all facilities that give up their entry in the pre-registration .

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