Spain’s Ministry of Industry has announced plans to cut incentives for new solar photovoltaic (PV) power plants by up to 45 per cent.
The move is designed to help reduce government spending but has drawn criticism from industry groups who say that it will harm growth in the country’s renewable energy sector.
The government wants to cut feed-in-tariffs (FITs) for large, ground-based PV plants by 45 per cent, those for large roof installations by 25 per cent, and those for small ones by five per cent. Its proposals are being considered by the Spanish energy regulator.
In July the Spanish government reached agreement with the country’s wind and solar thermal industry associations over the level of cuts to FITs for new wind and solar thermal installations.
The government says that the proposed drop in funding for new PV installations reflects technological improvements and cost reductions achieved in the industry in recent years.
But there remains concern among Spanish solar PV operators that the government may try to apply retroactive cuts to subsidies for existing PV plants, a move that the industry says would be illegal.
Talks between the government and the solar PV industry reportedly broke down in late July.
Spain’s system of generous subsidies for renewable energy have made the country one of Europe’s leading producers of alternative energy.
