March 3, 2017 Read More →

Spain Moves to Incentivize More Renewables

Bloomberg New Energy Finance:

The government said it will pay 600 million euros ($633 million) annually to renewable and cogeneration power plants as it seeks to reassure investors and revive its clean energy industry. The country guarantees a “reasonable yield of 7.4 percent,” the Ministry of Industry, Energy and Tourism said in an e-mailed statement Feb. 22. That applies from 2017 to 2019, with a review expected in 2020.

Spain’s clean-energy industry slumped after a wave of retroactive subsidy cuts that began in 2008, prompted by the European debt crisis. That cut payments for power-plant operators and stifled interest in building new ones. By guaranteeing a return, the government is seeking to spur development.

“They’re reassuring asset owners that their policy holds and they will get the yield they’re promised,” said Briony Bennett, policy analyst at Bloomberg New Energy Finance.

The southern European country has a goal of generating 20 percent of its energy from renewables by 2020. It has its first auction for new installations since the slump in 2016, inviting bids to build 500 megawatts of wind energy and 200 megawatts of biomass on the Iberian peninsula. Read more in the BNEF Insight Note here.

A second auction, originally planned for this quarter, is expected to auction off permits for 3 gigawatts, but will probably be delayed until at least the second quarter, according to the ministry.

Spain to Spend on Renewables, India Expands Solar Plan

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