MADRID (Thomson Financial) - The Spanish solar power sector association
(ASIF) welcomes the government's move to withdraw the draft establishing a cap
on subsidies, a spokesman for the association said.
The spokesman noted, however, that the removal of the cap does not mean that
a new one will not be implemented.
The government is currently re-negotiating a new regulatory framework for
the solar power sector, which has been slated as being finalised in the autumn.
The previous draft regulation on sector subsidies established a cap of 1,200
megawatts of installed capacity.
The new regulatory framework will bring a very significant cut in tariffs
and also boost volumes, the ASIF spokesman said.
Renta 4 analysts flagged that the photovoltaic sector has capacity of some
830 MW and is growing at over 100 MW per moth.
They said the news of the subsidy cap elimination is "very important" for
the sector "and removes a lot of uncertainty".
tfn.europemadrid@thomson.com
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