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Solar & Alternative Energy

Spain may slash solar power subsidies

Spain's government will ask the energy regulator to cut current subsidies to the solar power sector to curtail what it says is "unsustainable" growth, an Industry Ministry spokeswoman said on Thursday.

The spokeswoman added that proposals, to be submitted to the National Energy Commission (CNE) in the coming days, will seek to limit the amount of new solar capacity entitled to subsidies to 300 megawatts per year. That compares with a current cap of 1,200 MW, for which solar power generators receive a subsidy of 0.45 euros ($0.713) per kilowatt hour (KWh). Under the proposed scheme, due to come into effect on Jan. 1, 2009, 200 MW of the limit will apply to solar panels on buildings, with the remainder covering ground-based installations.

Full story from Reuters.