PV situation in SpainBy José Donoso, General Director of UNEFMay, 2013

Evolution of Spanish PV market

PV Situation in Spain May, 2013

PV Power connected to the grid (AC data)

Yearly PV Power

(AC data)

PV Situation in Spain May, 2013

Total regulatory uncertainty and retroactive measures

13 laws / royal decrees since 2007, some very damaging for PV market and

investment confidence:

- Royal Decree 1578/2008. One year market paralysis: employment destruction: from 60.000 to 14.000

workers.

- Royal Decree-law 14/2010. Retroactive hourly production limits to Feed-in Tariff (FiT): 30% FiT reduction

in 2011, 2012 and 2013, and 10% reduction for next 25 years.

- Royal Decree-law 1/2012. Undefined moratoria for renewable sources, started at January 2012 and still

ongoing.

- Law 15/2012. Discriminatory 7% tax for electricity production + State budget and CO2 auctions to pay FiT.

- Royal Decree-law 2/2013. Arbitrary change of the index-linked FiT to a special Consume Price Index:

2,7% FiT reduction only in 2013, and more losses in coming years.

Renewable companies and associations are taken Government to national and

international courts

Critical situation for PV in Spain

PV Plants have 35%-40% less income than expected

- Due to retroactive measures, PV installations cannot afford finance costs. PV Producers (companies and

people) have to renegotiate with banks (if they can) and face lost of PV installations and guarantees of the

loans.

Government will do more cutbacks to PV Plants

- Government is reforming the electricity sector and will do more cutbacks to renewable energy sources.- There are rumours about payment of back up services, prolonging the 30% FiT reduction due to hourly

production limits… Even It’s said the Government will expropriate the PV plants.

PV Companies are failing

- Due to moratoria, manufacturers, installers, distributors, engineers… are going to bankruptcy or abroad (if

they can). More than 50% of Spanish PV companies are disappeared since 2008. - Lost of employment (From 60.000 workers in 2008 to less than 7.000 now), knowledge and technology.

Government don’t approve a net-metering scheme

- PV is already profitable in self consumption models, but the Government don’t promulgate the necessary

regulation. A net-metering scheme should have been published one year ago.- The self-consumption scheme will develop a new market for PV without FiTs or other supports schemes.

PV Situation in Spain May, 2013

UNEF net-metering proposal key points

- Exchanges of energy. Rollover for 12 months. No payment for surpluses.

- PV systems size limited to the power contracted with utility.

- Shared net-metering for consumers in the same building or code land registry.

- Possible different owner for surface and PV installation in order to allow ESCO

business.

- No tolls for direct self consumption + Reduced tolls for net-metering, according to the

use of the grid.

- Yearly power caps: 200 MW – 300 MW – 400 MW thereafter (less than 1% of electricity

demand at year five).

PV Situation in Spain May, 2013

Benefits of UNEF net-metering proposal

PV Situation in Spain May, 2013

636

15215

907

21639

1.147

269

72

Empleos directos Cifra de negocio agregada (M€) Retornos al Estado (M€) Importaciones evitadas (M€)

EVOLUCIÓN ANUAL año1/ año3/ año5DE ALGUNOS PARÁMETROS MACROECONÓMICOS

Año 1 Año 3 Año 5

5.6905.210

2.660

Business amount Energy imports avoidedTax incomes

Economical expected evolution in 1 year / 3 years / 5 years

Direct jobs

Unión Española FotovoltaicaCalle Velázquez, 18. 7º izda. 28001 Madrid.Tel.: +34 917 817 712Fax: +34 917 816 443info@unef.es www.unef.es