Spain probes wind, solar power subsidy claims

MADRID Oct 27 (Reuters) - Spain's energy watchdog, the National Energy Commission (CNE) will inspect solar parks in the renewables energy-dependent country to verify they met deadlines that entitle them to subsidies, the CNE said.

Spain has boosted renewable energy in recent years to cut its heavy dependence on oil and gas imports, but has scaled down "feed-in" tariffs designed to gradually make wind and solar competitive with conventional generators.

An Industry Ministry official said the energy watchdog would check how many wind and solar power plants were installed in time to receive full subsidies before official aid was cut.

"There are some signs that there may be fraud in the installation and functioning of wind and solar parks," the official, who asked not to be named, told Reuters.

The CNE said in its statement that it would inspect solar parks to "determine the veracity and sufficiency" of documents to register them before Sept. 30, or before the government slashed generous subsidies.

A spokesman for the photovoltaic industry group ASIF said the law provides for routine annual inspections, and that some solar parks did not provide electricity before the deadline for subsidies because they had to wait to be connected to the grid.

"I understand that the government wishes to conduct inspections faced with the flood of installations, but it is too early to talk about fraud," he said.

The latest official estimates suggest Spain will have 2,000 megawatts of solar power capacity by the end of the year, or 1,400 MW more than at the end of 2007, making it the world's third-biggest producer after Germany and the United States.

Under the terms of the new subsidy scheme, only 500 MW of new installations will be entitled to feed-in tariffs. The new subsidies have fallen to the equivalent of 320 euros ($398.1) per megawatt-hour from 450 euros, for ground-based panels.

WIND FARMS TO BE INSPECTED

The CNE has also stated that it will inspect wind farms as figures supplied by industry group AEE showed 1,000 MW more in installed capacity at the end of 2007 than estimates by the watchdog and national grid operator REE (REE.MC).

In reply the AEE said in a statement that its estimate of 15,095 MW in installed wind farms was very close to a figure of 15,145 MW provided by the government's own renewable energy department, the IDAE.

"AEE denies the existence of fraud in the wind power sector's statistics," the statement added.

AEE estimates that total installed capacity for wind parks is now about 16,000 MW.

Wind farms which went on stream before Jan. 1, 2008 are entitled to a premium of 40 euros per megawatt-hour on top of the pool price. Those installed after the New Year can only receive a total of 82 euros/MWh.

At Monday's pool price <SP/BASE> -- the market benchmark -- of 67.97 euros per MWh, wind parks up and running last year may receive 107.97 euros per MWh, or 27.97 more than those connected to the grid after the New Year. (Editing by James Jukwey)