Spain allows net metering for small power plants

MADRID (Reuters) - Spain's government passed a decree on Friday designed to make it easier for small power plants to connect to the grid and pave the way for their operators to become self-sufficient.

Government spokesman Jose Blanco told a weekly news conference the measure was aimed at renewable energy sources, particularly photovoltaic (PV) panels, which convert sunlight into electricity.

An Industry Ministry statement added that the government was working on regulations to accompany the decree covering "net metering", whereby producers of less than 10 kilowatts can feed surplus power to the grid or draw from it to offset shortfalls.

"The gradual entry of this type of small plants will modify the current model of centralized big power stations by promoting a new system of more and more widespread generation," the ministry said.

A 10 kW plant can supply about four households and can be mounted on rooftops, as opposed to ground-based PV plants covering several hectares which make up most of Spain's solar installations.

PV plants now supply 3 percent of Spain's electricity.

Net metering is already on the statute books in Germany and several U.S. states, and analysts say it can promote solar rooftop plants without costly subsidies for a technology which is still in its infancy and cannot compete with electricity generated by burning coal or gas.

Sunny Spain became the world's second-biggest solar power producer in 2008 by luring investment in large ground-based plants with generous subsidies, which it had to axe to prevent the burden on taxpayers growing just as the economy was entering crisis.

The likely winners of parliamentary elections on Sunday, the People's Party, are not expected to provide further subsidies for renewable energy sources.

(Reporting by Martin Roberts; editing by Jason Neely)