Spain boosts subsidies for solar power projects

MADRID, April 23 (Reuters) - Spain has awarded subsidies for 130 megawatts of solar power projects, or enough to supply about 33,000 homes, the industry ministry said on Thursday, and the country is now the world's second-largest producer.

Spain was the world's hottest solar power market last year as plants were built in a rush to take advantage of a generous but costly subsidy scheme which ended in September.

The CNE energy watchdog has tallied at least 2,600 megawatts of solar power capacity installed by the Sept. 30 deadline, and estimates there may have been up to 3,700 MW, compared with 691 MW at the end of 2007.

If the estimate proves correct, the increase of 3,000 MW in Spain last year would outstrip all new plants installed in the world in 2007, and make Spain the world's second-largest solar generator after Germany.

In its second quarterly tender held this year, the industry ministry said the solar projects would be entitled to receive "feed-in" tariffs of up to 340 euros ($442.8) per megawatt-hour for 25 years.

Feed-in tariffs are designed to make solar and other renewable energy technologies gradually competitive with conventional energy, and compare with wholesale power prices of 40-44 euros/MWh in Spain <SP/BASE>. [EL/ES]

The government said it would tender for projects to build 35.3 MW roof-mounted panels in the third quarter of 2009, and 89.5 MW of ground-based plants. (Reporting by Martin Roberts; editing by Sue Thomas)