Spain is widely known for its achievements in the field of renewable energy projects. However, the government of Spain remodeled these energy plans and announced a cutoff in the subsidies for solar and wind power sectors.

The ongoing scheme for wind and solar energy will expire by January 1 – 2013; afterwards, the premiums will be cut off by 30 to 35%. On the other hand, Thermosolar plants are also going to give up an advantageous rate that they receive in the first year of their operations.

Renewable Energy

An official statement by the Spanish government says that the new agreements for wind and solar energy include short term measures that are expected to waive off the impact on electricity prices of these technologies. In addition, long term measures will ensure future stability and brighter prospects for both sectors.

Last month, a freeze in the prices of electricity was announced by Spain’s Socialist government, causing a suspension in the 4% hike that was scheduled for July. This move was planned to help business and households cope better with the country’s severe economic crisis.

Image credits: portofsandiego.