Renewable Energy Plan 2005 - 2010

The Spanish Renewable Energy Plan (Plan de Energías Renovables en España, PER) for 2005-2010 represents a revision of the Spanish Promotion Plan for Renewable Energy (Plan de Fomento de las Energías Renovables en España) 2000-2010 in force up until then. The Plan presents the energy targets set for each area of renewable energy technology, the measures necessary to meet those targets - including financing - and the lines of technological innovation and the benefits deriving from their application. The Plan aims to maintain the governments commitment to meet at least 12% of total energy use from renewable sources by 2010, while incorporating other indicative targets - 29.4% of electricity generated from renewable sources and 5.75% (more accurately 5.83%) of transport fuel needs to be met from biofuels by 2010 - adopted after the previous Plan came into effect. Certain details on specific provisions are indicated below. Wind: As planned, wind energy would generate up to 20,155 MW by 2010. This was an increase on the previous target of from 13,000 MW by 2010. To encourage this growth from present capacity, the plan noted the importance of grid access for renewables and ameliorating the transmission systems management. Solar: The plan provided for 4-5 million square metres of solar generating capacity by 2010. It also promoted the use of photovoltaic collectors in buildings through public subsidies from local and central agencies, with official backing for solar installations. The objective for solar power installations was increased to 400 MW by 2010, compared with the previous objective of 144 MW. In October 2007, the government announced a further increase of this target - namely 1,200MW of installation capacity by 2010. In making the announcement, the Spanish Ministry of Industry, Tourism and Commerce announced that figures from the Comisión Nacional de la Energía showed that 85% of the original quota had been met, and that the full 400MW was likely to be installed by the end of 2007. The plan also aims to have 500 MW of thermoelectric solar power generation capacity by 2010. Biomass: As established in the PER, biomass-generated electricity should total 2,000 MW per year by 2010: 3568 Ktoe, including a target of 1552 Ktoe from co-firing. To complement the PER in achieving this target, the Spanish government passed Law 24/2005 in November 2005 to favor biomass over traditional power sources. Biofuels: The Spanish government also raised its target for the production of bio-ethanol and bio-diesel to 2.2 million tonnes of oil equivalent (toe) by 2010, from an initial 0.5 million toe. The plan also provided for EUR 2.855 to promote biofuels through fiscal incentives. The Plan set common standards for the administrative processes of Spains autonomous regions and established a single office to oversee renewables and cogeneration operations. The plan is indicative, meaning that it is not binding upon the actors in the energy system. Funds for feed-in tariffs comprise EUR 4.956 billion of the total budget. The energy industry is expected to finance 77% of the overall cost of the renewable energy plan, and other private sector industries another 20% and the government, the remainder. Tax incentives will also be offered.

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