As a reaction to the financial crisis in the Mediterranean country, the new Spanish government, under Prime Minister Mariano Rajoy, has approved a new law, by which the current system of remuneration for renewable energies will be discontinued.
As the Council of Ministers announced on Friday, the government wont give any economic incentive to fund new renewable installations, and the relevant administrative and funding systems will be suspended.
While it was said that the suspension will be temporary, the government did not disclose any timeframe for when the FITs may be resumed.
In a statement released, it argued that "to maintain the current system of remuneration is incompatible to the current economic crisis." It did stress, however, that the new measures will not be retroactive. They wont effect "either the installations in operation, or those that are already registered."