Spain wind power growth seen slowing in 2010: AEE

MADRID (Reuters) - Spanish wind power installations are likely to grow at a slower rate in 2010 after a rush last year to beat changes in a subsidy scheme, an industry group said on Monday in the world's fourth-largest producer.

The Spanish Wind Power Association (AEE) predicted that 1,000 megawatts of wind parks would be built this year, compared to 2,459 MW last year.

"Just like every time legislators have modified the regulations (2004, 2007), promoters last year made an effort to execute projects whose investments were made in the light of prior rules," an AEE statement said.

"While the industry has lost 5,000 direct job losses in the second half of 2009 due to canceled orders, promotion will really show the impact of unnecessary bureaucratic obstacles."

Spain's government last year cut back on subsidies in May because it predicted that wind power capacity was on course to exceed a target of 20,115 MW it had set for 2010 when it originally drew up the scheme.

The Industry Ministry awarded subsidies to 3,769 MW of wind power projects in 2009.

Subsidies have driven a boom in renewable energy in Spain in recent years in a bid to cut the country's hefty dependence on imported fuel and its greenhouse gas emissions, which are well above Kyoto limits.

Consequently, Spain is now the world's second-largest producer of solar power and the fourth-biggest of wind power -- after Germany, the United States and China -- and hillsides covered in wind generators can be seen on any train journey.

But the government has also pledged to slash spending to cut back its budget deficit to 3 percent of gross domestic product by 2013, from 11.4 percent last year.

RANKS FOURTH IN WORLD

AEE said Spain now has 19,149 MW of wind power installed in Spain, or about 20 percent of the country's total generating capacity of 93,215 MW.

Wind capacity will need to rise by 45,000 MW by 2020 if Spain is to meet EU targets to derive 20 percent of all energy from renewable sources, AEE estimates.

At present, the two leading wind power producers in Spain are Iberdrola's renewables unit, and infrastructure firm Acciona.

An AEE spokesman estimated that Spanish companies were also building wind parks in more than 30 countries.

Wind parks accounted for 13 percent of all electricity generated in Spain last year, according to the national grid operator REE, and met 45 percent of demand for power on November 8.

Growing supplies of wind power coupled with low festive season demand at the end of December forced wholesale power prices down to zero for hours at a time.

(Reporting by Martin Roberts)