1. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Feasibility of Photovoltaic Power Plants in Marginal Terrains in Spain Alberto Rodrigo, José Enrique Sánchez, Vicente Guna

2. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Framework of the study Power ranging: from 50 kWp to 2-3 MWp Areas characterized by intrinsic, induced or latent marginality The PVs in Bloom Project was created with the aim of supporting the installation by public and private investors of ground photovoltaic plants of small and medium dimensions ( Photovoltaic Panel Plantations – PVPPs ) In this framework, Chamber of Commerce, Industry and Shipping of Valencia has lead a “ Feasibility study of PVPPs in Marginal Terrains in Spain ” This presentation is about the exposure of the study, its findings and conclusions

6. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Phase I: a compilation of legislative background There are several kinds of legislation in the form of laws, decrees dispositions that regulate various aspects of the PV market in Europe A background has been compiled in this study: European countries: Germany France United Kingdom Italy Spain Spanish regions: Andalucía Baleares Cataluña Canarias

7. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Phase I: a compilation of legislative background CASE 1: Instalation of PVPPs in degraded natural terrains CASE 3: Laws for regulating the development of administrative procedures for the installation of photovoltaic solar panels INTERNATIONAL Italy Incentives for the investment in solar energy in landfills in the Region of Piamonte REGIONAL Andalucía Actions needed to implement the regeneration project and suitability for public use of “Green Corridor of Guadiamar" INTERNATIONAL Italy Guidelines for the identification of possible impacts of solar plants and inclusion in the territory of Sardinia. REGIONAL Islas Baleares, Law 6/1997, of Rural land in Balearic Islands. Islas Canarias, urgent measures in land management and planning Catalonia, regulation of administrative procedures for the implementation of eolic plants and photovoltaic installations in Catalonia . CASE 2: Grants for the development and implementation of energetic efficiency measures of renewable energy CASE 4: Laws on tax deductions for activities that promote renewable energy use SPAIN Energetic efficiency measures and development of renewables energies in the municipalities of Spain promoted by FEMP (Spanish Federation of Municipalities and Provinces) and IDEA Financing Agreement ICO-IDEA to promote investment in renewable energy and energy efficiency, 2005 INTERNATIONAL Italy, promotion of photovoltaics and criteria and methods to promote the production of electricity using photovoltaic conversion Germany, law for the preference of renewable energies France, action plan for the development of renewable energy . United Kingdom, on the regulation of rates SPAIN LAW 35/2006, of november 28, Income Tax of Individuals and partial modification of the laws of the Corporation Tax on Nonresident Income and on Capital .

9. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Phase II: Identification of potentially marginal terrains 2) Transposition of criteria to geographic variables A.1) Land Uses: 1. Open cast mines no longer in use 2. Open cast mines reaching the end of their useful life 3. Every kind of landfill out of use 4. Every kind of landfill almost abandoned 5. Degraded areas; lack of vegetation, unclassified as urban areas, areas to be transformed (according to CORINE LAND COVER) 6. Industrial areas no longer in use 7. Polluted areas to be reclaimed and recorded in the register office as Polluted Site (DM 25 October 1999 n. 471) 8. Arable land never seeded or without vegetation (in all the dates analysed by CORINE LAND COVER) 9. Farm areas unsuitable for arable land, forestry or grazing (class VIII Land Capability Classification) 10. Clear zone 10.1 clear zone of infrastructures (streets, railway, gas pipeline, …… .) 10.2 cemetery clear zone 10.3 clear zone around sewage treatment plants 10.4 airport clear zone 10.5 radio broadcasting clear zone 10.6 clear zone around accident risk sites 10.7 waste disposal airport clear zone 11. Military areas 11.1 abandoned 11.2 almost abandoned A.2) Topografy: Pendientes : land of steep slopes are excluded, although they have an optimal orientation . Orientation : land of steep slopes with orientations North, Northwest, Northeast are also discarded . A.3) Environmental protection: all those protected areas by some kind of environmental interest are excluded . (1) CORINE LAND COVER (2) DEM – S R T M (3) Environment Ministry

11. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Phase II: Identification of potentially marginal terrains 3) Application of GIS for spatial analysis A selection of valid land uses has been made from the layer CORINE. These areas hold uses that has been considered as potentially marginal terrains. CORINE LAND COVER CODE USO CORINE2000 11210 Estructura urbana abierta 12110 Zonas industriales 13100 Zonas de extraccion minera 13200 Escombreras y vertederos 23100 Prados y praderas 32111 Pastizales supraforestales templado-oceanicos, pirenaicos y orocantabricos 32112 Pastizales supraforestales mediterraneos 32121 Otros pastizales templado oceanicos 32122 Otros pastizales mediterraneos 33220 Afloramientos rocosos y canchales 33230 Coladas lavicas cuaternarias 33310 Xeroestepa subdesertica 33330 Espacios orofilos altitudinales con vegetacion escasa 33400 Zonas quemadas 41200 Turberas y prados turbosos Compatible land uses

12. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Phase II: Identification of potentially marginal terrains 3) Application of GIS for spatial analysis Slope map Orientation map DEM-SRTM

13. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Phase II: Identification of potentially marginal terrains Suitable terrains to be declared as MARGINAL Layers combination Slopes Orientations Valid land uses Or. S, Slp < 10% Or. N, Slp < 5% Valid Or&Slp Protected areas Valid LU&Or&Slp CORINE DEM CODE USO CORINE2000 11210 Estructura urbana abierta 12110 Zonas industriales 13100 Zonas de extraccion minera 13200 Escombreras y vertederos 23100 Prados y praderas 32111 Pastizales supraforestales templado-oceanicos, pirenaicos y orocantabricos 32112 Pastizales supraforestales mediterraneos 32121 Otros pastizales templado oceanicos 32122 Otros pastizales mediterraneos 33220 Afloramientos rocosos y canchales 33230 Coladas lavicas cuaternarias 33310 Xeroestepa subdesertica 33330 Espacios orofilos altitudinales con vegetacion escasa 33400 Zonas quemadas 41200 Turberas y prados turbosos

15. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Phase III: Technical and economic study in a pilot area Civil works to implant the PVPP The most adequate for this study: ATERSA A-214P d h d h

16. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Phase III: Technical and economic study in a pilot area With this configuration of panels, it is been studied the most adequate positions per year, as shown in the table below: Calculation of optimal configuration of panels

17. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Phase III: Technical and economic study in a pilot area Economic Study

18. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Phase III: Technical and economic study in a pilot area

19. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Phase III: Technical and economic study in a pilot area Environmental ristoration Considering an average cost for an environmental ristoration, with the features of this terrain, we get a cost of 25 € /m 2 . As we have a surface to make the ristoration of 50.777m 2 : It is 1.269.425€ of COST to make the environmental ristoration. This may cause the owner raises an investment to generate other economic activity

20. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Analysis and discussion of results : Analysis of the pilot case H0 H1 H2 H3 H4 H5 H6 H7

21. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Analysis and discussion of results : Extrapolating the results A previous study of University of Jaén , determines that there are 44.602,29Ha of mines and landfills in Andalucía. Under the hypothesis that only a 5% of these terrains could be declared as marginal, it is concluded that the region of Andalucía has a potential power production wih PVPPs of 699MWp. It also concludes that potential in Spain is of 1,183GWp, only in mines and landfills An extrapolation can be made to obtain a global indicator of the rate cost/investment: Considering all the surface of mines and landfills, we have: 284mill€: COST of Envronmental Ristoration 1.321mill€: INVERSION in PVPP This means a rate of 22%, quite representative to consider making the inversion and not a spending. This study concludes that TOTAL potential is of 16,79GWp . If we compare that with the previous study it can be seen that both results are consistent. This study considers not only mines and landfills (sites of reduced area), every compatible land uses with the declaration of marginality .

22. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Conclusions Socio-economic Installing these facilities has a positive impact on the sustainability of the social model . They generate an increase of the economical activites of the affected municipalities and therefore it supports the economic activity of the country, since they suppose the creation of new and productive companies. The limited availability of land at a price that these facilities can be viable makes that complicated procedures are used. This makes reasonable the aim of making easier this procedures when we have marginal terrains. Environmental Impact In general, the incentives of this type of energy is positive for environment , since it involves the use of degraded areas for the implementation of an economic activity, without negative impact for the environment Evolution of spanish laws During lst years, a great number of installations h ave been afected negatively by changes in legislation and by the current economic and financial juncture . Therefore, invest in the establishment of some kind of incentives to install solar photovoltaic plant on marginal land, should be very positive to reactivate this sector of activity.

23. Supported by: Feasibility of PVPPs in Marginal Terrains in Spain Final International Conference PVS in BLOOM Budapest - 22 September, 2011 Conclusions Spanish potential in marginal terrains Comparison with Environmental Ristoration costs About the incentives As a result of this study, the available surface to be declared as MARGINAL is of about 53.734Ha , that means an installable potential of 16,8GWp. According to data from National Comission of Energy, in March 2011, it exist in Spain 3.871MWp of installed power . Ministry of Industry has published the PANER 2011-2020 (National Plan of Renewable Energies). It says that in 2020 8.367 MW should be installed. The contribution of these terrains to the objectives of the plan could be very beneficious. Under the hypothesis of making the environmental ristoration of avery available terrains, we have the table beside. Considering the environmental ristoration as a spending, it is concluded that represents a significant quantity of the inversion to make to implant PVPPs. It seems that the most reasonable incentives are the H1 or H5 (5% on sales rate or 5% on the result) , since the influence of the incentive is sensitive about the productivity of the plant, but does not seem too excessive, and therefore it could be considered acceptable.