Spanish moratorium on renewable power
Over the weekend, the Spanish government passed down the Royal Decree 1/2012, which suspends feed-in tariffs for newly installed generators of renewable power. The country's wind, biomass, and solar sectors are up in arms.
Spain has a unique way of financing its feed-in tariffs. Whereas most countries pass on the full cost as a surcharge to the retail rate (often with exemptions for energy-intensive industry), part of Spain's feed-in tariffs is funded via tax money as part of the governmental budget. Now, the Spanish government, which has been working to change this type of financing for several years, says the budget has been used up. Effective immediately and for an indeterminate period, generators of renewable electricity that are newly installed are no longer eligible for feed-in tariffs – the Decree applies for solar, wind, and biomass.
Spain's Fundacion Renovables (Renewables Foundation) has brought together "more than 40 institutions" in a petition against the moratorium presented in Madrid on January 31. The APPA, which represents producers of renewable power, says the moratorium will shut down the entire sector, destroying a growing corporate network in the process.
Today, 37 associations, including Greenpeace and Spanish labor union CCOO, joined forces with representatives of the renewables sector by holding a joint press conference in Madrid. They point out that the sector has already lost 20,000 jobs over the past few years and warned that further jobs could put the unemployment rate in Spain at above 23 percent.
Spain has a goal of 20 percent renewable power by 2020, but as the APPA points out Spain missed its goals for 2010, boasting only 11.3 percent renewable power instead of the planned 12.1 percent. (Craig Morris)
