Spanish subsidies for cogeneration and renewable energy plants look set to be cut after they rose last year by 8% to EUR7.1 billion (US$10 billion), accounting for 39% of the country’s electricity bill.
The Spanish regulator had forecast a fall of 10% and the additional cost means that Spain is now likely to look at ways of reducing its target of meeting 22.7% of national energy needs from renewable sources by 2020, a target submitted to the European Union in December 2010.
Industry minister Miguel Sebastian is devising plans for Spain to stick to its pledges on low-carbon energy as voters struggle to pay their energy bills amid the worst economic slump in at least 60 years.
It now seems likely that Spain will be aiming for a clean power target of 20.8% of energy use, which is in line with a recent parliamentary committee report.
The government will announce the main elements of the energy plans this month with the final version set to be approved in July.
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