The latest announcements from the Spanish government leave the CSP industry in an uncertain situation.
Feed-in tariffs have been removed for good and a new scheme of investment supplements will be in place for renewables, however the consequences for CSP are still unknown.
The Spanish government has announced a new electricity reform which will have consequences for the CSP industry. The new framework aims to reduce the 4.5 billion euro deficit forecasted for the electricity industry in Spain by withdrawing feed-in tariffs to renewables among other, one of the several new policies.
Under the new law, both renewables and cogeneration plants will receive a supplement for their investment to help make them economically viable. It has been established at a 7.5 % rate; however, it is not known yet on which amount this percentage will be applied.
CSP Today spoke with Luis Crespo, president of the European Solar Thermal Electricity Association, who stated that it is too early to comment on the impact of the reform on the CSP plants in Spain. “They will not apply the supplement to the investment that has actually been made but to certain standards that they are due to announce. We do not know what the standards will be, in consequence we cannot say if 7.5% is reasonable or not,” he explained.
Nonetheless, he expressed his concern over the rate: “At first glance a rate of 7.5% applied to a new technology with high technological risk seems too low.”
CSP Today Sevilla 2013 will gather the main players who are dealing with the changes in the Spanish framework. Among others, organizers have confirmed the participation of José Segura, deputy for Santa Cruz de Tenerife, Hermenegildo Altozano from the law firm Bird & Bird and Luis Pérez de Ayala from law firm Cuatrecasa Concalves Pereira.
Together with Luis Crespo and representatives of Acciona, Abengoa and E.ON, they will be discussing which strategies the industry must take in response to the government changes in regulation.
The event will also be focusing on the off-grid opportunities for the CSP industry in mining, oil and desalination since these sectors are looking into CSP as an economically viable option to feed their energy demands. Speakers include the World Petroleum Council, the International Desalination Association and the Saline Water Conversion Corporation from Saudi Arabia.
For more information on CSP Today Sevilla 2013 visit: www.csptoday.com/csp/