Spanish Industry, Energy and Tourism minister José Manuel Soria on Friday announced a new system of financial returns for renewable installations based on a guaranteed "reasonable profitability" of such projects and fixed by the government at 7.5%.
The minister did not reveal how the latest cuts are going to be introduced, saying only that there will be a new system for renewable energy.
The Canary Islands and the Balearics will have a new renewables scheme. Soria explained that renewable energies are more cost effective than conventional energy in the Spanish islands.
The government claims the changes are backed by existing legislation of the electricity sector and previous rulings of the Supreme Court.
Cuts in the national renewables budget were announced along with further cutbacks in distribution and transport intended to save around 2.7 million and come on the back of previous reductions in FIT payments in 2012 and this year.
The Spanish government is trying to deal with a tariff deficit estimated at around 26 million.
The minister said energy reform will give certainty to the sector and confidence to the investors.
This is the fifth photovoltaic cut in Spain. The first was introduced in 2010 with the Real Decreto-Ley 14/2010 which put a limit on the number of hours funded by the feed-in tariff.
This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: email@example.com.
By submitting this form you agree to pv magazine using your data for the purposes of publishing your comment.
Your personal data will only be disclosed or otherwise transmitted to third parties for the purposes of spam filtering or if this is necessary for technical maintenance of the website. Any other transfer to third parties will not take place unless this is justified on the basis of applicable data protection regulations or if pv magazine is legally obliged to do so.
You may revoke this consent at any time with effect for the future, in which case your personal data will be deleted immediately. Otherwise, your data will be deleted if pv magazine has processed your request or the purpose of data storage is fulfilled.
Further information on data privacy can be found in our Data Protection Policy.