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Utilities could reduce renewable energy production to raise prices

The National Energy Commission (CNE) considers that in the current regulation there is a risk that electricity companies with power from both renewables and ordinary sources reduce the production of the former to force a greater cost signal of the latter and, with it, raise the market price.

Given this possibility, it proposes a regulatory adjustment that consists of the priority enjoyed by renewables to evacuate electricity is not applied in real time, but only in the processes of analysis of restrictions in the daily and intraday markets.

This consideration is included in a report of the CNE in which two additional proposals are included to those already formulated in recent months to improve the electricity market.

The regulator assures that the electricity system must currently mobilize greater power reserves and greater adjustment services, and that these two efforts cause an increase in the cost of the consumer.

- Publicidad -

The cause of these deficiencies is, he says, not only in "certain behaviors" in the market or in some "mismatches" between the programmed energy and the one finally demanded, but also in the "preference in the evacuation of renewable energies".

On this aspect he focuses his first proposal, in which he warns that "the priority of evacuation could lead a relevant agent, with renewable and conventional energies, to make offers in the daily market with a reduced program in the renewable part, with the intention of raising the price of this market".

PUMPING INCENTIVES

The second recommendation of the agency is the need to create mechanisms that attract investments for energy storage, gas turbines and pumping plants, which are those that raise the water used in hydraulic jumps for its new use.

The National Renewable Energy Action Plan (Paner) includes an increase of 3,200 megawatts (MW) in pumping power in 2020, up to 5,700 MW. The CNE wonders "whether the net incentives that these facilities currently receive could be sufficient."

DISSENTING DIRECTOR

The two new proposals of the energy regulator have been approved by four votes in favor, three against and one abstention. In addition, one of the directors, Jorge Fabra, has issued a particular vote in which he expresses his rejection of the proposal related to the elimination of the preference for the evacuation of renewables in real time.

- Publicidad -

Fabra regrets that the cassation in the electricity market is increasingly "ghostly" and that this circumstance causes "an increase in the recognized costs borne by consumers".

The counselor also disagrees with the CNE's proposal that renewable energies themselves, and not only consumers, participate in the cost of adjusting generation to integrate these sources. (EUROPA PRESS)

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