Tue Apr 27th, 2010 at 06:40:48 AM EST
Something of a spat is emerging in Spain over the issue of feed in tariffs for renewable electricity. Much of the concern centers around the idea that the current system is unsustainable, because projections show subsidies rising 32.5% between now and 2013. This rise is largely the product of a massive expansion in Spanish thermic solar capacity from 931 MW in 2010, to 2,470 MW in 2013.
The pictures help, but the different technologies are (from left to right) cogeneration, photovoltaic, thermic solar, wind, mini-hydro, and biomass. The blue line is subsidies in millions of euros, and the black numbers capacity in MWs. We can get the average feed in tariff from the numbers here.
Thermic Solar 0.61/w
from the diaries - Nomad
While the industry organizations have put together a lobby to fight the cuts, the news is coming hard. Stocks across the sector have fallen today, and the word on the street is that the government may make the cuts retroactive back through 2009, meaning that the revenues of the companies will be slashed. Although this certainly benefits gas fired plants, it looks like the prime driver here is the idea of austerity in the face of the prospect an onslaught of Greek style speculative attacks on sovereign debt. It looks like the game is on in Iberia, and renewables subsidies are the first item for attack.