Spain bill targets 1,400 MW wind energy/year to 2020

MADRID: The Spanish government has set an annual target for installed wind energy of 1,400 megawatts between 2013 and 2020, according to draft regulation the Industry Ministry sent to the energy sector watchdog CNE.

In the draft, to which Reuters gained access on Thursday, the ministry says the aim is to install 11,200 MW in the period to ensure that there are 35,000 MW operating in 2020.

The additional cost to the electricity system will be around 800 million euros over the eight-year period, according to the ministry's calculations.

"This does not take into account the reduction in pool prices due to the introduction of this technology," the ministry said, adding that the shortfall will be funded by electricity tariffs and will not come out of Spain's annual budget.

The draft regulation also includes changes to the remuneration system for wind power facilities. The installations will sell their energy at pool prices and will also receive a premium, but only in the event that the premium and the pool price combined falls within a minimum and maximum limit.

For 2013, the ministry has established in the draft regulation a 20 euros/MW premium, with a maximum of 80 euros/MW and minimum of 55 euros/MW.

The new regulation establishes an annual cap of 1,500 working hours to obtain the premium, but cuts to a maximum of 12 years the period during which facilities are eligible for the premium.

"Wind energy technology has reached a level of maturity which will allow it to compete with conventional technologies in the market in a very short time," the draft said.

The wind energy sector association AEE said in a statement that thousands of jobs will be lost if the new regulation is implemented.

But an Industry Ministry source said the new regulation "provides a stable system for the long term."

Copyright Reuters, 2011