UPDATE 2-Spain wants sharp subsidy cut for solar plants

Wed Jun 16, 2010 4:56pm GMT

* Lobby says Spain wants 30 pct cut for operating plants

* Wants to cut subsidies for future plants by 25-45 pct

* Industry lobby says cuts would mortally wound sector

(Adds detail on timings of cuts, further comment)

By Jonathan Gleave

MADRID, June 16 (Reuters) - The Spanish government is proposing sharp cuts in subsidies for solar plants, which could hurt both domestic and international solar companies operating in the country, industry lobbyists said on Wednesday.

Spain wants to cut existing solar panel plants' subsidies by 30 percent and future ones by 45 percent for big floor-mounted units and 25 percent for smaller roof mounted ones, Spanish solar power lobby ASIF spokesman Tomas Diaz said.

"This (proposal) would destroy the government's renewables-friendly policy and kill us all off," Diaz said after solar lobby groups met with Spain's Secretary of State for Energy Pedro Marin.   Continued...

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