Spain has already connected 337 MW out of the 371 MW set by the country's renewable energy plan as a goal for 2010. That means that the current legislation (Royal Recree 661/07) needs to be reviewed.
So far, the Department of Industry has proposed a support scheme "inspired by the German one, with annual cuts of 5% in the feed-in tariffs received by developers". Besides, a new goal has been set, at 1,200 MW by 2010. According to sources from the Department of Industry, the current scheme will still apply for all the facilities connected to the grid by September 29th, 2008, and those subsidies will be paid during the next 25 years.
According to ASIF, the proposal will mean a total "paralysis" for the industry. The association considers that the new proposal is, due to the conditions it introduces, a "limitation", as no company will risk any more in "those projects expected to be completed in the 2008 - 2010 period, as they may fall outside the 1,200 MW quota". In regards to this, ASIF pointed out that the solar PV needs a stable framework for the long term, without legal uncertainties.
ASIF suggests to decrease the feed-in tariff
The solar PV industry admits that the current growth rate of the solar PV sector in Spain (above 500% in the last year) has been sustained by feed-in tariffs that they have already suggested to reduce. The industry association admits that the new feed-in tariffs should balance the drop in costs, however it also suggests that the future decrease in the feed-in tariff level should take into account that the solar PV industry needs to spend a lot of money on R&D and is at the moment embarked on intense investment to acquire maturity and compete in a global market.
ASIF considered, besides, that the solar PV industry needs to face its future looking at the year 2020. By then, the European Union should cover 20% of its electricity needs by renewable energy, and solar PV can play, according to ASIF, an important role in this goal.
For all the above reasons, the group has commissioned a detailed report about the situation to Arthur D. Little (ADL), with two goals: to establish a framework for the industry looking at the year 2020 and suggest a subsidy scenario to rule the development of the technology until then.
For additional information:
www.asif.org
