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Is the Sun Setting on Solar Power in Spain? (Can Spain maintain its lead in solar tech?)

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Posted by rpautrey2 on October 24, 2008, 7:16 pm

October 20, 2008

Is the Sun Setting on Solar Power in Spain?
With waning subsidies and other attractive markets, can Spain maintain
its lead in solar tech?
By Carolyn Whelan

On the outskirts of Seville, Spain, 600 rotating mirrors send shafts
of light to a collector atop a soaring 380-foot- (115-meter-) tall
tower. Its scalding 480-degree-Fahrenheit (250-degree-Celsius) steam
drives a turbine generating a peak capacity of 11 megawatts (MW) of
electricity for the national grid. This "power tower" is the first of
nine to be built by Spanish engineering giant Abengoa Solar, which all
told will produce enough electricity for 153,000 homes by 2013.

From power towers to parabolic trough plants and from photovoltaic
farms to roof-mounted solar panels, solar energy is booming in Spain.
This month, Europe's first commercial solar-thermal parabolic trough
planta 15-mile (24-kilometer) curved mirror complex dubbed Andasol
that focuses light on collector tubes with synthetic oil bubbling to
750 degrees F (400 degrees C)revs up in Andalusia. Vast acres of
solar farms using photovoltaics made from semiconductors to convert
sunlight to electricity now span southern Spain: Celebrated ground-
mounted photovoltaic (PV) plants include La Magascona and Jumilla with
their array of 120,000 modules on 120 single-axis "follow-the-sun"

Even carmakers want a piece of the Spanish sun. In July General Motors
said it will build the world's biggest rooftop solar power station in
Spain, carpeting two million square feet (185,800 square meters) of
the roof at its Zaragoza automobile plant with 85,000 flexible solar
panels. And the 50-megawatt Andasol plant is also the world's largest
facility employing molten salts to store renewable energy: 28,500 tons
of molten potassium and sodium nitrate salt in two tanks that bank
excess solar heat for more than seven hours.

Plentiful sunshine isn't the only reason entrepreneurs and industry
have flocked to Spain. The Spanish advantage includes abundant land,
strong demand for air conditioning, mammoth infrastructural firms to
fast-track projects, and, most importantly, generous subsidies. The
nation's feed-in tariffs guarantee 25 years of up to triple the market
price for solar energy, making it the world's hottest solar market,
trailing only subsidy-richer Germany as well as the U.S. with its
historical lead in developing solar technology.

"Feed-in tariffs shift competition to manufacturers, creating an
incentive for innovation," says Wilson Rickerson, a Boston-based
energy consultant. "Manufacturers that can produce the most efficient
and cost-effective ways of generating energy gain most."

In fact, money committed for Spanish PV projects (mostly ground-based)
shot up nearly 500 percent from 2006 to 2007 to a total of $.45
billion, according to London-based New Energy Finance, a renewable
energy market research firm.

But obscuring the light are a few clouds. This month Spain slashed the
maximum capacity of solar farms that can claim subsidies from 1,200 MW
to just 500 MW. Installed PV capacity has already tripled to 1,500 MW
in under a year, should double again by 2010 to 3,000 MW, and more
than triple to 10,000 MW by 2020. Spain also cut PV feed-in tariffs by
about a third to around 33 eurocents per kilowatt hour. Solar-thermal
executives fear the same fate within 24 months as new plants add solar

That's led many companies to mull other markets. Though Spain
backpedaled on severe cuts after panel makers balked, companies like
Energias de Portugal Renovables are pulling out because of profit
worries and, in August, BP shelved plans for the world's largest solar
panel plant in Spain. Critics have warned that when subsidies dry up,
so will solar's appeal. "PV project developers rushed to Spain because
subsidies guaranteed returns well above the cost of generating power,"
explains Nathaniel Bullard, a solar associate at New Energy Finance.
"Cuts will drive developers to other markets with high subsidies."

Companies are already eyeing the area's "Club Med" countries where
similar feed-in tariffs exist, such as France, Greece and Italy;
swathes of sunny Latin America are a possibility; and the U.S. is the
ultimate objective as the world's largest electricity market with
abundant potential in its sun-soaked Southwest. Healthy tax credits
for solar energy in the U.S., extended for eight years in October are
also a draw. Abengoa is already building the world's largest solar
plant, 280-MW Solana, in Arizona.

"We've been in Spain since 1999 where 80 percent of our revenues
originate because its south has double Germany's sunshine and
attractive feed-in tariffs," says Henner Gladen, chief technology
officer at solar-thermal firm Solar Millennium. That share should fall
as the company's new U.S. projects gain ground. "And China, Australia,
the Middle East and Africa are the markets of tomorrow."

Spain is already charging into North Africa, which is bathed in 40
percent more sunlight. With World Bank backing, Abengoa is breaking
ground on the  first hybrid solar-thermal and natural gas burning
power plants in Morocco and Algeria, online by 2010. "With abundant
radiation and land in its deserts, our neighbor, North Africa, is this
region's Southwest," says Michael Geyer, director of international
business development at Abengoa, noting that Algeria already has feed-
in tariffs. Solar-thermal plants are also planned for Egypt, Israel,
Jordan, Libya and the United Arab Emirates.

Most importantly, the initial African power plants and Spain's solar-
thermal test bed pave the way for energy export from planned solar
farms in the Sahara Desert across a high-voltage direct current trans-
sea line to Europe, pending political will and public funds. French
President Nicolas Sarkozy resurrected the idea this year in a Plan

Studies show that harnessing just 0.3 percent of the sunshine on North
African and Middle Eastern deserts could power those regions and
Europe. Optimists, such as Nikolai Ulrich, head of renewables Europe
at Germany's Nordbank, foresee energy export from Africa within seven
years. Imminent milestones include talks in Algeria and Tunisia for
transmission lines to Italy, planned for next year. Spain has an edge,
because it has been swapping electricity with Morocco over their own
two-way line for about a dozen years.

And Spain's solar revolution at home may only slownot stall. Spain
has ample sun, legislation that calls for solar on all new buildings,
and PVs poised to deliver low-cost electricity. "Spain is a leader in
CSP [concentrated solar power] and hybrid solar/natural gas systems,"
says Paolo Frankl, head of renewable energy at the International
Energy Agency. "And in Spain I expect a shift from ground-mounted
plants to solar installations in industrial sites, buildings and other
infrastructure like highways. Competition helps innovation."


Posted by Eeyore on October 24, 2008, 8:14 pm

rpautrey2 wrote:

And what do they do at nightime ?


Posted by Gordon on October 24, 2008, 8:42 pm

Here is one solution. Cut and pasted from the OP.

And the 50-megawatt Andasol plant is also the world's largest
facility employing molten salts to store renewable energy: 28,500 tons
of molten potassium and sodium nitrate salt in two tanks that bank
excess solar heat for more than seven hours.

Demand is also less at night, so other sources like hydro, Nuke,
wind, even conventional gas or coal plants, can pick up the

Posted by Eeyore on October 25, 2008, 2:00 am

Gordon wrote:

Seven hours isn't a lot.

Spain is lucky like that. Won't work in N Europe.


Posted by AdeV on October 25, 2008, 11:02 am
 On Sat, 25 Oct 2008 03:00:44 +0100, Eeyore wrote:

IIRC, the "molten salt" thing is used at the Seville plant. I'll try to
find out, as I'll be living not far from there in a couple of weeks

Indeed. It won't even work that well in Spain in winter - they've just
had 3-4 days of overcast & loads of rain. Not much solar going on there,


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