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The NEC demands cuts to thermosolar premiums

A long-awaited report from the National Energy Commission (NEC) that included proposals to reform the Spanish energy sector came to light yesterday. The report includes a battery of measures to achieve savings of more than 4.251 billion through 2016 with a goal of doing away with the tariff deficit.

Among the proposed measures is a cut to thermosolar plants enrolled in pre-registrations, to apply a céntimo verde fee that will help finance renewables or to raise power tariffs significantly.

According to the regulator, preliminary estimations indicate that the premium for pre-registered thermoelectric solar plants would have to have their rates cut by 12%. With this amount, they could save 337 million euros through 2014.

Up until now, thermosolars can generate 15% of their production with natural gas by converting it with combined cycle turbines, a situation that electric companies criticize sharply because this process "is not renewable and also causes contamination." As a result, the NEC proposes limiting conventional combustion techniques to 5% of total output, which could provide savings of 220 million euros through 2015.

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