Solar Subsidies For Spain

Spain has awarded subsidies to planned solar power plants with a total generating capacity of 502 megawatts, enough to supply 125,000 homes, a government statement in the world's second-largest producer said on Monday.

The Industry Ministry said it had completed the fourth round of bidding for photovoltaic (PV) projects scheduled for 2009, which will be entitled to receive "feed-in" tariffs of up to 340 euros ($505.9) per megawatt-hour for 25 years.

Feed-in tariffs are designed to make solar and other renewable energy technologies gradually competitive with conventional energy, and compare with wholesale power prices of about 32 euros/MWh in Spain

Spain was the world's hottest solar PV power market last year when plants were built in a rush to take advantage of a generous but costly subsidy scheme which ended in September 2008.

The Ministry estimates Spain now has 3,900 MW of PV plants either working or under construction. Solar plants supplied 2.2 percent of Spain's electricity needs in November.

Photovoltaic panels convert solar energy directly into electricity, while solar-thermal plants, which use heat from the sun's rays to drive a generator, have a different subsidy scheme.