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Interview with Juan Laso, President of AEF, Photovoltaic Business Association

Mr. Laso, why did the photovoltaic sector in Spain need an association like AEF?

A little over a year ago, twelve major Spanish photovoltaic manufacturers and industrial managers came together to fund the Photovoltaic Business Association. We had, by then, led the Spanish photovoltaic take-off. We decided to work together within an Association in order to impulse an industry for the future in Spain: innovative, efficient, net employment generator and with an exports vocation. We did it with a clear and decisive aim to work together with the Ministries directly involved in photovoltaics as well as other Administrations (i.e. Regional governments, etc) and other associations within our sector and the broad renewable energy associations.

Up to September 2008 the industry saw a huge surge, how do you view the process and aims of the creation of the new regulation?

In our first few weeks as an Association we played a key role in the agreement which resulted on the Royal Decree 1578/2008 that regulates our sector. This bill was negotiated as a way of channeling, normalising and professionalising a segment that had a massive growth in a very short time to maximise gains from the old tariffs. The current regulation implied a big effort and sacrifice that the industry undertook in exchange of a higher commitment by all agents towards a capital energy source. The sole energy source that is modular, clean and free from fluids. Thus, key for the welfare and energy development of the 21st century, as recognised by the immense majority of western governments.
Regardless of how things could have been done better in the past, it is also true that the effort by the industry in 2008 enabled various photovoltaic companies from Spain to lead this sector globally as the most advanced. Spain is one of the only four countries worldwide to achieve completion of the value chain; we head technological and industrial advances, and have great expectations of wealth and employment generation.

It seems, after just over a year with the RD 1578/2008 that the industry is at a standstill and facing a crucial dilemma, what are the options to ensure the future of Spanish photovoltaics?

In this dilemma the options are crystal clear. Or we work together to maintain international leadership in a basic energy source, or we let it dwindle to make amends for hypothetical past errors. Depending on our current and near future decisions, when invariably all countries will have developed and invested in this technology, we will have the opportunity to stay ahead, or we will be forced to import an essential technology that we would have let go from our own hands.
From this strategic perspective, it is urgent to amend those aspects from the current Royal Decree that have contributed to the paralysis of the industry as well as distorting its performance. I am referring to the caps system in particular, which dilutes in bureaucracy the quality, innovation, technical implementation and value of new projects. Moreover, it tends to encyst speculation and has motivated that not even 20% of the total power predicted for 2009 will be implemented to meet the deadline as set by the Ministry.