A report issued by Spain’s National Energy Commission (CNE) has found that the PV sector did not contribute to the increase in the country’s power tariff deficit in 2012.
The annual report was issued on April 18. It analyzed the massive power tariff deficit seen in Spain’s electricity sector in 2012. Spain’s cumulative tariff deficit has risen to €35.6 billion. Just 0.03% of that was due to the PV sector.
According to CNE’s figures, last year, the deficit reached €5.6 billion, thus representing a 45.7% increase compared to 2011. The increase was primarily attributed to the costs of the special regime (renewables and cogeneration), which, at €8.6 billion, ran 19% over budget (excluding PV); and for offshore power subsidies (Balearic Islands, Ceuta, and Melilla), which, at €1.6 billion, ran 27% over budget.
While the PV sector subsidies only deviated from €2.610 billion to €2.611 billion, other renewables played a key role in the tariff deficit. Solar thermal went 68% over its budget of €553 million, cogeneration went 51% over budget at €1.23 billion, and wind went slightly over at 5% with a budget of €1.9 billion.
Here’s a table that shows the breakdown of each:
| Technology | Installed capacity (MW) | Energy production (GWh) | Premium (€ cents/kWh) | Total premium (€ millions) | Total cost (€ millions) | Deviation |
| Cogeneration | 6,440 | 25,448 | 4,83 | 1,232 | 1,865 | 51% |
| Solar PV | 4,296 | 6,703 | 38,94 | 2,610 | 2,611 | 0.03% |
| Solar thermal | 1,551 | 2,326 | 23,76 | 553 | 927 | 68% |
| Wind | 22,664 | 47,160 | 4,11 | 1,937 | 2,037 | 5% |
| Others | 4,124 | 21,638 | – | 891 | 257 | 29% |
| Total | 39,126 | 99,191 | 7,28 | 7,221 | 8,586 | 19% |
Source: Adapted from CNE
On January 27th, the Spanish government approved Royal Decree Law 1/2012 to handle the deficit. The Royal Decree Law imposed the suspension of financial incentives for new electricity generation systems using co-generation, renewable energy sources, and waste; and a fee for the pre-allocation register for projects.
Then, on February 1st, the Spanish government enacted Royal Decree Law 2/2013, which included a premium for special regime installations that sell energy to the market. This RDL hoped to reduce costs in the electricity sector and save, according to government, an estimated €600-800 million per year.
During 2012, there was an increase of about 20% in subsidies paid out to the renewable energy industry. This growth can be attributed to the fact that electricity output from the special regime grew by 10.6%, and the share of PV and solar thermal increased by 11% and 88%.
Of the total production of Spain’s electricity in 2012, the special regime accounted for 38% of the energy generated. Solar Power ranked third with 6.7%, falling behind cogeneration at 26% and wind at 47%.
Spain is expected to make cuts in renewable energy of up to €1 billion this year. No word yet if this will be across the board for all renewables.
Photo Credit: Muffet / Foter.com / CC BY
