(SeeNews) - Jun 9, 2014 - The Spanish government approved new regulations for renewable energy and cogeneration on Friday in a move to tackle the tariff deficit and avoid a collapse in the electricity system, energy minister Jose Soria said.
The new scheme provides for reasonable rates of return, the government said, with payments based on Spanish 10-year Treasury-bills' interests plus 300 basis points.
Between 1998 and 2013, the subsidies for renewable energy and cogeneration installations exceeded EUR 56 billion (USD 76.348bn). The new model points to an additional EUR 140 billion in the rest of the useful life of such facilities, apart from market revenues.
The system has accumulated a tariff deficit of over EUR 29 billion, while the subsidies for renewable energy and cogeneration soared by 800% to over EUR 9 billion in 2013.
The government expects a minimal tariff deficit for 2014 versus over EUR 3 billion for 2013, registered until now.
The new rules are valid for both existing and new installations.
(EUR 1 = USD 1.363)