Last minute solar legislation proposed in Spain

AEF (Spain’s Photovoltaica Business Association) was the only industry group invited to the meeting with the government. Right after the meeting Mr Pedro Marín, the country’s Energy Secretary, declined to inform about the terms of the new proposal.

After having received feedback from companies on the government’s previous proposal, the administration still needs to review the report produced by the Council of State, which should be the last hurdle for the Royal Decree to be passed in the Council of Ministers. Their next meeting will be held on Friday, September 29th, but it is not sure that the new legislation will be passed then. Nothing serious would really happen should the legislation not be passed this week, as the new legislation includes power caps for every three months, the first of which would start in January 2009.

Mr Marín recalled that the goal set by Spain’s Renewable Energy Plan was 371 MW for 2010, with a rate of 70 MW per year, whereas currently the market has already topped 1,500 MW, according to the latest estimates.

The solar industry believes, however, that the introduction of caps coupled with a drop in the feed-in tariffs will endanger the very survival of such a thriving industry. Some big solar companies have already announced a reduction in their investments.