UPDATE 2-Spain eases plan to slash subsidy for solar power

From Reuters:

Spain has decided to ease proposed sharp cuts in a generous subsidy scheme to solar power producers in one of the world's hottest markets, Energy Secretary Pedro Marin said on Tuesday.

Marin said the proposed limit on total capacity of new solar power panels entitled to subsidies in 2009 will be 500 megawatts, which compares to an earlier draft proposal to set the cap at 300 MW.

"We have approved an additional 200 MW for ground-based installations to soften the change," Marin told reporters after a meeting with solar power lobby group AEF.

That raises to 300 MW the proposed cap on ground-based installations, and leaves the limit on roof-mounted panels entitled to receive subsidies at 200 MW.

Solar panels take up a lot of space, so only ground-based plants can produce power on anything like a utility scale. One recently installed 5 MW plant in Spain covers 40 hectares (99 acres)....MORE