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Spain to cut subsidies to wind-power plants

PALMA DE MALLORCA, Spain: Spain will cut subsidies to wind-power plants following an overhaul of the way it calculates aid for renewable power sources, hurting earnings at utilities including Iberdrola, the world's largest producer of wind power.

PALMA DE MALLORCA, Spain: Spain will cut subsidies to wind-power plants following an overhaul of the way it calculates aid for renewable power sources, hurting earnings at utilities including Iberdrola, the world's largest producer of wind power.

Electricity generated from wind will be paid between 67 and 84, or $89 and $112, per megawatt hour starting next year, down from about 97 this year, Spain's secretary of state for energy, Ignasi Nieto, said on the sidelines of a conference in Palma de Mallorca. Rates will rise for solar and biomass plants as well as for sources that co- generate power and heat.

"Wind power subsidies were exaggeratedly high, especially since the technology has developed in the last few years and costs have fallen," Nieto said.

Spanish subsidies for wind power in the last eight years have helped it become the world's second-largest producer of wind power after Germany. Spain is trying to curb the emission of carbon dioxide, the gas blamed for global warming, while meeting soaring demand for electricity as its economy grows faster than the European average.

Over all, Spain will devote 1.8 billion a year until 2010 to subsidizing wind power, 50 percent more than this... more [truncated due to possible copyright]  

PALMA DE MALLORCA, Spain: Spain will cut subsidies to wind-power plants following an overhaul of the way it calculates aid for renewable power sources, hurting earnings at utilities including Iberdrola, the world's largest producer of wind power.

Electricity generated from wind will be paid between €67 and €84, or $89 and $112, per megawatt hour starting next year, down from about €97 this year, Spain's secretary of state for energy, Ignasi Nieto, said on the sidelines of a conference in Palma de Mallorca. Rates will rise for solar and biomass plants as well as for sources that co- generate power and heat.

"Wind power subsidies were exaggeratedly high, especially since the technology has developed in the last few years and costs have fallen," Nieto said.

Spanish subsidies for wind power in the last eight years have helped it become the world's second-largest producer of wind power after Germany. Spain is trying to curb the emission of carbon dioxide, the gas blamed for global warming, while meeting soaring demand for electricity as its economy grows faster than the European average.

Over all, Spain will devote €1.8 billion a year until 2010 to subsidizing wind power, 50 percent more than this year, Nieto said. Solar power subsidies will almost double, he said.

"The new rates will not mean less wind parks are built, because they will still be making more money than they were a few years ago," Nieto said.

The government plan has been sent to energy industry regulators for review.


Source: http://www.iht.com/articles...

DEC 4 2006
https://www.windaction.org/posts/6111-spain-to-cut-subsidies-to-wind-power-plants
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