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Recently, the Spanish parliament formally approved the decree of Prime Minister Rahoei Mariano Rajey to stop subsidies for new renewable energy projects. Energy Minister Jose Manuel Soria said that the suspension of subsidies for solar and wind power projects aims to eliminate the deficit of 24 billion euros in the Spanish electricity system.
"This year, the government's primary task is to reduce the budget deficit. This measure will save at least 160 million euros," said Spanish Minister of Industry Zemanuel Soria. However, industry sources said that the suspension of subsidies, especially in the absence of a definite suspension period, will undermine investor confidence, and renewable energy was once the most rapidly developing industrial sector in Spain.
"This decision is a huge blow to renewable energy. Who will invest in renewable energy after the introduction of such a policy?" said Vaclav Havel, head of the Spanish Renewable Energy Fund. The Spanish government has adopted renewable energy as a new way of economic growth and job creation, which has promoted the development of solar energy and wind energy throughout Spain.
In 2008, Spain's solar power installed capacity accounted for half of the world, the main reason for rapid development is the subsidy policy. The development of renewable energy has also made Spain a world-renowned company in this field. The country’s energy giant Iberrola is a world-class large producer of clean energy, and Gemeinco is one of the world's leading wind turbine manufacturers. However, since the global economic crisis in 2008, the Spanish economy has been in a state of depression, and the growth rate of renewable energy is also not as good as before.
Between 2008 and 2010, Spain’s renewable energy sector cut 20,000 jobs due to government subsidies. The reduction of job opportunities in the renewable energy field has caused the unemployment rate in Spain to continue to climb. At the end of 2011, the unemployment rate in Spain reached 23%, the highest level in industrialized countries.
In terms of power generation costs, renewable energy cannot compete with coal and natural gas, so government subsidies play a crucial role in its development. Last year, due to subsidy cuts, Spain’s wind power growth rate fell to a minimum of 5.1%.
Environmentalists are even worried that reducing subsidies for green energy will increase Spain’s dependence on fossil fuels. Carlos Bravo, head of the Spanish branch of Greenpeace, said: "Spain can't stand this downgrade. After all, Spain has led the field."
After the government stepped on the brakes of subsidies, Spain's renewable energy swept away the world's leading style and was facing an embarrassing situation. The Spanish government stated that reducing subsidies will reduce Spain's contribution to the EU's renewable energy goals. The EU plans to achieve 20% of energy consumption by 2020 from renewable energy sources.
"This year, the government's primary task is to reduce the budget deficit. This measure will save at least 160 million euros," said Spanish Minister of Industry Zemanuel Soria. However, industry sources said that the suspension of subsidies, especially in the absence of a definite suspension period, will undermine investor confidence, and renewable energy was once the most rapidly developing industrial sector in Spain.
"This decision is a huge blow to renewable energy. Who will invest in renewable energy after the introduction of such a policy?" said Vaclav Havel, head of the Spanish Renewable Energy Fund. The Spanish government has adopted renewable energy as a new way of economic growth and job creation, which has promoted the development of solar energy and wind energy throughout Spain.
In 2008, Spain's solar power installed capacity accounted for half of the world, the main reason for rapid development is the subsidy policy. The development of renewable energy has also made Spain a world-renowned company in this field. The country’s energy giant Iberrola is a world-class large producer of clean energy, and Gemeinco is one of the world's leading wind turbine manufacturers. However, since the global economic crisis in 2008, the Spanish economy has been in a state of depression, and the growth rate of renewable energy is also not as good as before.
Between 2008 and 2010, Spain’s renewable energy sector cut 20,000 jobs due to government subsidies. The reduction of job opportunities in the renewable energy field has caused the unemployment rate in Spain to continue to climb. At the end of 2011, the unemployment rate in Spain reached 23%, the highest level in industrialized countries.
In terms of power generation costs, renewable energy cannot compete with coal and natural gas, so government subsidies play a crucial role in its development. Last year, due to subsidy cuts, Spain’s wind power growth rate fell to a minimum of 5.1%.
Environmentalists are even worried that reducing subsidies for green energy will increase Spain’s dependence on fossil fuels. Carlos Bravo, head of the Spanish branch of Greenpeace, said: "Spain can't stand this downgrade. After all, Spain has led the field."
After the government stepped on the brakes of subsidies, Spain's renewable energy swept away the world's leading style and was facing an embarrassing situation. The Spanish government stated that reducing subsidies will reduce Spain's contribution to the EU's renewable energy goals. The EU plans to achieve 20% of energy consumption by 2020 from renewable energy sources.
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