Spain's competition regulator, the CNMC, says that it supports cutting renewable energy subsidies by 1.71 billion euros in 2014. The impact of their decision will vary depending on what technologies and installation types are used. For hydroelectric, it's obvious that that they are losing the subsidies because their energy model is outdated and their equipment is paid for.
But cutbacks look very different for wind farms, which Spain invested in heavily years ago, compared to those for solar plants. Cogeneration will have to be revamped over time as will waste treatment techniques, because these areas will be affected by the subsidy cut. Overall, it was necessary to create some sense out of the chaotic energy subsidy situation that had become full of abuses and an out-of-control deficit.
