Spain Boosts Electricity Transmission Investment to €17 Billion Through 2030
Spain Increases Electricity Grid Investment Amid Rising Demand
Government Announcement and Investment Details
MADRID, Sept 16 (Reuters) - The Spanish government has decided to increase investment in the electricity transmission network to more than €17 billion ($19.6 billion) through 2030, around 30% more than initially planned, Energy Minister Sara Aagesen said on Wednesday, citing rising demand for electrification.
Drivers of Increased Investment
• Spain's rapid expansion of renewable energy capacity as well as new demand coming from large energy users such as data centres have increased the need to invest in power grids.
Public Consultation and Demand Breakdown
• "This is the largest investment in grids in the history of this country," Aagesen said. She also said a public consultation process had shown a significant increase in demand for power connections from industry, housing and renewable energy projects.
• General demand for electricity accounted for 41% of proposals received in the consultation, followed by power generation projects at 40% and energy storage at 19%.
National Energy Transition Goals
• The investment is aimed at supporting national energy transition goals and meeting targets under its 2023-2030 National Energy and Climate Plan.
New Capacity Market and Auction Mechanism
• Aagesen also said Spain will shortly publish rules creating an auction-based capacity market for the electricity system, open to power generation and storage firms, as well as some customers.
• Under the mechanism, participants would receive compensation for being available to inject electricity into the grid or for reducing consumption during peak demand or stress events.
Exchange Rate Information
($1 = 0.8666 euros)
(Reporting by Emma Pinedo, Pietro Lombardi and Benjamin Mejias, editing by Andrei Khalip and Tomasz Janowski)
