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Photovoltaic energy in Spain

General
The whole spectrum of renewable energy policies is laid down in the Program for Promotion of Renewable Energies 2005-2010 (PPER or PFER in Spanish). Revised version of PFER 2000-2010, the strategic target of PFER is to achieve by 2010 a 12% of primary energy consumption by renewables (with, a.o., a 30.3% contribution of renewables to electricity consumption), through a joint combination of subsidies, tax exemptions and feed-in-tariffs for electricity production. The total investment for the realisation of the renewable energy plan (PPER) for the period 2005-2010 is estimated to 23,600 M€, from which 36% (8,490 M€) would be contributed by public support (feed-in tariff electricity: 4,960 M€, biofuels: 2,850 M€, subsidy direct to the projects: 680 M€).

According to the Directive 2009/28/EC of the European Parliament and of the Council on the promotion of the use of energy from renewable sources the target for the share of energy from renewable sources in gross final consumption of energy in the year 2020 for Spain is 20% (in the year 2005 the share was 8.7%). The Directive has a mandatory 10 % target for transport to be achieved by all Member States, which refers to renewable sources as a whole, not biofuels alone.

Renewable energy projections according to the National Renewable Energy Action Plan for Spain
The National Renewable Energy Action Plan (NREAP) for Spain was submitted in July 2010. The target according to Annex I of Directive 2009/28/EC is 20% for the year 2020 and the projected NREAP share in that year is 22.7%.  According to the projection, the most important contribution in the year 2020 is expected from wind power (78.3 TWh or 6729 ktoe, 31% of all renewable energy). Second important contribution is expected from biomass (renewable heating and cooling) (4950 ktoe, 22% of all renewable energy). The third largest contribution is from hydropower (39.6 TWh or 3404 ktoe, 15% of all renewable energy). Wind power contributes with 38.0 GW (78.3 TWh) in the year 2020 (onshore wind 35.0 GW and 70.5 TWh, offshore wind 3.0 GW and 7.8 TWh). For solar photovoltaic the 2020 contribution is projected to be 8.4 GW (14.3 TWh). For solar thermal the 2020 contribution is projected to be 644 ktoe. The two most important biofuels are projected to contribute 3100 ktoe (biodiesel) and 400 ktoe (bioethanol / bio-ETBE) by 2020. The renewable electricity production from solid biomass amounts to 7.4 TWh (636 ktoe) and for biogas it is expected to be 2.6 TWh (225 ktoe). The consumption of renewable heat is expected to amount to 4850 ktoe for solid biomass and 100 ktoe for biogas.

Renewable Electricity: photovoltaic energy (PV)
The target of the renewable energy plan (2005-2010) for PV in Spain, 400MWp at the end of 2010, has been reached in 2007 with 3 years of anticipation. The feed-in tariff applicable in Spain up to 28 September 2008 has been that defined by Royal Decree 661/2007 of 26 May 2007. This was especially favourable to the installation of large size power plants. The tariff valid for the first 25 years varied from 0.4404 €/kWh for installations smaller than or equal to 100 kWp (0.3523 €/kWh after 25 years), to 0.4175 €/kWh for installations between 100 kWp and 10 MWp included (and then 0.3340 €/kWh) and 0.2294€/kWh for power plants up to 50 MWp (and then 0.1838 €/kWh).

After the market cap of 371 MW specified by RD 661/2007 had been reached, the Spanish price regulation was revised with regard to the provisions on photovoltaic energy. RD 1578/2008, which stipulates the amended conditions, entered into force at the end of September 2008. The capacity limits for the different system types are re-defined as part of the application procedure every quarter. Prior to the conclusion of an application procedure, the market caps specified for each system type are published on the website of the Ministry of Industry, Tourism and Trade (Annex III RD 1578/2008).

Redesiging the PV feed-in tariffs has the following objectives:

Two groups are defined within RD 1578/2008: 

Within RD 1578/2008 the transfer of quota between the calls is foreseen. When in a call the allowed capacity, of any of types, is not covered, the remaining capacity will be transfered as additional capacity to base capacity of the other type in the following call. When in a call the allowed capacity, of both of the types, is not covered, the remaining capacity will be transfered as additional capacity to base capacity of the same type in the following call.

The feed-in tariff for electricity generated from solar sources may be amended in 2012. However, this depends on technological and market developments and on the smoothness of the distribution process (art. 15, RD 1578/2008).

The accumulated realised PV in 2008 is estimated between 2500 and 3000 MW. For 2009 and 2010 an additional capacity of 500 MW for each year is expected, so that an accumulated PV capacity of more than 4000 MW is foreseen in 2010. Epia (European Photovoltaic Industry Association) expects solar power to be cheaper than retail electricity prices by 2012 in Spain, but state support schemes such as feed-in tariff must remain in place until then. 

Future programme changes expected
No information available.

Sources
Interactive EurObserv’ER Database, http://www.eurobserv-er.org, 2007

Photovoltaic Energy Barometer, http://www.eurobserv-er.org, April 2008

Royal Decree 661/2007, 25th May 2007

ENDS Europe: http://www.endseurope.com

New provisions on the feed-in tariff for photovoltaic energy in Spain: http://res-legal.eu/

Royal Decree 1578/2008, 26 September 2008

Hugo Lucas (IDAE): Royal Decree 1578/2008 on the payment for the electric production activity from solar photovoltaic technology, November 2008

Directive 2009/28/EC of the European Parliament and of the Council of 23 April 2009 on the promotion of the use of energy from renewable sources and amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC (Entry into force on June 25th, 2009), download from http://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=CELEX:32009L0028:EN:NOT

Renewable energy policy; country profiles (Re-Shaping). Based on information available in October 2009, http://www.reshaping-res-policy.eu, 2009

The National Renewable Energy Action Plans (NREAPs) are all published on the Transparency Platform on Renewable Energy: http://ec.europa.eu/energy/renewables/transparency_platform/action_plan_en.htm (sourced July - December 2010)

Renewable Energy Projections as Published in the National Renewable Energy Action Plans of the European Member States, http://www.ecn.nl/nreap (sourced December 2010)


Interactive EurObserv’ER Database

http://www.eurobserv-er.org

Last update: December 2010



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