Spain drops renewable projects over financial concerns

The Spanish Government has stopped subsidising renewable projects while it balances its books. The Government said the cost of the reward system was adding too much to the deficit, but […]

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By Tom Gibson

The Spanish Government has stopped subsidising renewable projects while it balances its books. The Government said the cost of the reward system was adding too much to the deficit, but halting it did not jeopardise security of supply as a glut of investment in solar and CCGT has left power capacity with comfortable breathing space around peak demand needs, according to reports.

Critics have questioned the decision: while the Spanish Government aims to cut its budget deficit from 8% from last year, the number of people without jobs also continues to rise. In 2011, 93% of Spain’s installed power came from renewable sources, their Government claimed.