President of Spain’s Acciona Energy : Renewable energy: Subsidy cuts cause crisis of confidence

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By Peter Wise
Financial Times

A winning combination of natural advantages, powerful utilities and public policy has made Spain a world leader in renewable energy. But a government decision to make retroactive cuts in one of the guaranteed subsidies that have helped drive this green revolution raises serious questions for the future of Spanish energy policy.

The retroactive cuts in the subsidies paid to producers of solar photovoltaic (PV) energy announced last December came “at the worst possible moment, given the severe economic crisis affecting Spain”, says Miguel Salis, chief executive of N+1 Eolia, which manages Spain’s largest independent wind and solar PV operator.

Carmen Becerril, president of Spain’s Acciona Energy, the world’s largest non-utility renewable energy developer, points out that the measure has caused a “crisis of confidence, not only in the renewable sector, but the economy as a whole”. She adds:

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