The Council of Ministers approves the Renewable Energy Plan (PER) 2005-2010

12.1% of energy consumption by 2010 will be provided with renewable sources. The new PER, approved by the Council of Ministers, will have an investment of 23,598 million euros.

Among the forecasts of the new plan, which replaces the previous plan of promotion, highlights the important contribution of wind energy, the increase of biofuel targets and the progression in the development of biomass. The new Renewable Energy Plan (PER), approved by the Cabinet of Ministers on August 26, has been developed with the aim of guaranteeing the safety and quality of the electrical supply and respect for the environment. With this plan, the Government of Spain wants to face the commitments of Spain at the international level (Kyoto Protocol, National Allocation Plan) and those that are derived from the European Union.

The total amount of the investment foreseen in the PER during the period 2005-2010 is 23,598 million euros. The affected companies will invest 77%, 20% the project promoters and the public aid supposes near 3%. This public financing will adopt the forms of investment aids, tax incentives and premiums for the generation of electricity with renewable sources. The PER also represents an opportunity for technological innovation and will therefore have economic funds for research.

The forecasts of the new Plan highlights the important contribution of wind energy that increases its installed power objective to 20,155 MW in 2010 with an estimated production of 45,511 GWh. The targets of biofuels that go from the 0.5 million tonnes equivalent of oil (toe) stipulated by the previous plan, to 2.2 million tep in 2010. The thermoelectric solar energy raises its objective to 500 MW. With regard to biogas, it is intended to increase the power installed during this period of 94MW with a production of electricity associated with this increase that rises in 2010 to 592 GWh and is translated in terms of primary energy at 188 ktep additional Finally, regarding the biomass, the objectives between the one for the generation of electricity and that of thermal uses are differentiated. With regard to the first, the objective of growth stands at 1,695 MW with the branding of a co-combustion program (combustion of biomass and coal at the existing plants), an increase in the remuneration at Generated electricity (in electrical biomass facilities that is proposed in the plan) and the strengthening of the Interministerial Commission of Biomass with the aim of boosting the potential market. With regard to thermal biomass, the stipulated increase rises to 583 ktep with an improvement in supply logistics and a new line of support, lost in funds, for investment.