The Spanish government will back down from its plan to cut revenue for existing solar energy plants that threatens to bankrupt hundreds of photovoltaic plant operators, the head of Fotowatio Renewable Futures said.
“It wasn’t a concrete proposal,” said Fotowatio’s chief executive, Rafael Benjumea, who met deputy industry minister Pedro Marin yesterday to discuss the plan. “We are confident that the government will rectify its approach and won’t approve a decree with any element of retroactivity.”
Spain plans to cut the revenue of existing solar-panel installations by 30 percent and the subsidy for new plants by as much as 45 percent, Tomas Diaz, director of external relations at the Photovoltaic Industry Association in Madrid, said yesterday. The government expects to reduce energy costs by about 1 billion euros ($1.24 billion) as a result of the cuts, according to an industry ministry spokesman.
Solar executives, whose companies have invested more than 18 billion euros in the last three years in Spain, have pressed the government for weeks to maintain prices guaranteed for 25 years under a 2007 law. They now plan to challenge the decision in court, Diaz said....MORE