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Output of Green Power Continues to Increase

Ljubljana, 31 July (STA) - The production of electricity from renewable sources continues to increase despite government measures to curb green subsidies, according to the latest figures from the Ministry of Infrastructure and Spatial Planning.

State subsidies for feed-in tariffs of renewables totalled EUR 70.6m in the first half of the year, up almost a fifth over the year before and more than in the entire 2011.

The number of installations included in the scheme rose by 123 year-on-year to 3,700 and they generated just over 500 GWh of electricity, an increase of 19% over the year before.

The bulk of the subsidies, EUR 33.7m, was allocated to solar installations, which also accounted for the majority of the new installations included in the scheme.

Co-generation plants got EUR 17.8m and biogas EUR 8.1m. Hydro plants - only small and micro installations qualify for subsidies - received EUR 5.6m.

The subsidy averaged EUR 141 per MWh, down slightly over the previous year.

The figures suggest that the government decision of December 2012 to lower subsidies for solar has dampened the expansion of photovoltaic installations.

In the years up to 2013 total subsidies for solar almost doubled each year due to attractive subsidies.

The trend now appears to have slowed down as only 75 new solar installations joined the scheme in the first six months, but the subsidy cut appears not to have as a devastating an impact on the sector as feared by operators.

The government had opted for the reduction of subsidies because the construction of solar installations surged as prices of solar panels collapsed due to cheap Chinese imports.

This made such installations very attractive for investors but risked making the scheme financially unsustainable.

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