The ministry wants to introduce variable feed-in tariffs, which would fall when production levels exceed a set level, a cut in the total hours covered by the tariff and a reduction in the tariff itself.
"The proposed regulations will not guarantee the financing of new projects, the figures just don't add up," an AEE spokesperson told Windpower Monthly. "We are still open to discussions but the negotations have broken down."
The industry wants to see the post-2012 regulations in place before general elections in November.
The Spanish daily Cinco Días today reported the ministry's proposals include cutting from 2,300 to 1,500 the annual production hours covered by the tariff, limiting to 12 years the period in which new wind farms receive premium tariffs, and calculating tariffs to cover return on investment but not operating costs.
In January it was revealed Spain installed just 1,516MW of new capacity in 2010, the lowest annual result since 2003 (1,327MW), according to figures from the AEE.
The industry blames the poor figures on the central government’s project-licensing register, introduced in 2009 and capping new capacity to end-2012.