Spain proposes 62% hike of grid investment cap through 2030

By Pietro Lombardi

MADRID (Reuters) - The Spanish government plans to increase by 62% a cap set on how much companies can invest in power grids through 2030 to draw more investment, Energy Minister Sara Aagesen said on Friday.

She said she expects investments tied to the trunk network of 13.59 billion euros ($15.94 billion) between 2025 and 2030.

A huge blackout that hit Spain and Portugal on April 28 reignited a debate about investment needs in the country's power networks.

Under Spanish rules, the amount of money energy companies can pour into networks every year is limited to a small percentage of the country's gross domestic product, since consumers ultimately bear the cost with their bills.

Under the proposed new rules, investments in local distribution grids would increase by 7.7 billion euros from current limits while those in the transport grid, which carry power from the power stations to the local grid, would rise by 3.6 billion euros, Aagesen said.

Spain's grid operator REE, owned by Redeia, manages the trunk grid, and carries out investments envisaged in government plans.

Power companies including Iberdrola and Endesa control and invest in local distribution grids, which take electricity to the final customers.

Aagesen said Spain expects 27.7 GW of new demand, such as from data centres, in the transport grid through 2030.

A huge increase in Spain's renewable power generation in the past few years has reduced prices of renewable energy, creating new demand and interest among investors, she said.

The government will set up a committee to work on optimising the use of its networks, Aagesen said, adding that the country granted access to the power networks to some 43 GW of new demand between 2020 and 2024.

($1 = 0.8526 euros)

(Reporting by Pietro Lombardi, editing by Inti Landauro and Susan Fenton)