Flexible Feed-in Tariff presented in Spain

ASIF, Spain's solar PV industry association, has presented a suggestion to the government based on an innovative "flexible" feed-in tariff, dubbed TFF. The suggestion has also been endorsed by APPA, the Spanish Association of Renewable Energy Producers.

ASIFs proposal includes a yearly revision of the feed-in tariff (the current proposal points at revisions every 4 years), linked to the growth of the market as stated by the National Energy Commission (CNE) and the deviation of the actual capacity from the forecasts. The average drop in the feed-in tariff would be 5% per year. The TFF would not be applied until October 2009, as the first year (from October 2008 to October 2009) would simply set the benchmark and objective for the following year. In order to avoid too much uncertainty on the future feed-in tariff (in case it is expected to drop heavily), the proposal has included a yearly range of decrease between 2% and 10%.

With the new flexible tariff, the market would be more "adaptive, stable and certain".

According to Mr Javier Anta, President of ASIF, the proposal is an incentive for the Spanish government to announce the new legislation. According to ASIF, it is vital for the industry to know the new rules as soon as possible. The current legislation will expire by the end of September and most people believe that the industry will reach 1,200 MW of connected capacity before then, which would mean the end of the current feed-in tariff, set by the Royal Decree 661/2007.

Last week ASIF representatives had a meeting with Mr Ignasi Nieto, Energy Secretary General of Spain. “We do not understand the delay in the new legislation; the solar PV industry cannot stop as companies need to forecast their activity, and they cannot wait until September for that" said ASIF. However, after last weekend's elections, when socialists remained in power, the new legislation is expected to be released soon. We will keep all of you informed.

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