Yesterday the Cabinet approved RD 661/2007, an amendment with retroactive effect that regulates the activity of special production under special regime. The new regulatory framework is completely unfavorable to existing investments and provides a picture of complete distrust for investors, especially if foreign, on legal certainty of Spain as a sovereign state.
Besides establishing time limits on tariff for projects connected before September 28, 2008 representing a cut of 30% or higher, it establishes a maximum of tariff hours during the full project life.
This, in our opinion, only favors those who have not optimized their facilities and is a direct blow to those who through their work and daily efforts are achieving high yields (the so named PR) and availability.
The first thing that comes to mind is the amount of non-recourse financing that is in the Spanish PV market (15,000 M ÔéČ?) which will have to renegotiate debts to avoid reaching a situation that the RDL seeks to avoid, meaning the financial/real estate crisis that banks can not assume. What if other sectors add themselves to that scenario?