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Renewable premiums will cost 3,700 million more in 2020 when Spain exceeds the EU target

Fuente: REUTERS

Source: REUTERS

The premiums for renewables will cost 3,700 million euros more in 2020 due to Spain's intention to exceed the target set by the European Union of 20% of final consumption of 'green' energy and reach 22.7%, according to the Spanish Gas Association (Sedigas).

The National Action Plan for Renewable Energies (PANER 2011-2020) approved by the Ministry of Industry indicates that in 2020 Spain will exceed the objective indicated by the European Commission of assuming 20% of renewable energy consumption, and will reach 22.7%. This excess consumption will mean an extra cost of 3,700 million euros in renewable premiums.

In 2009, renewable energy premiums amounted to €6,215 million. Of this figure, solar technology had a distribution of 2,688 million; wind energy, 1,608 million; hydropower, 232 million; and biomass, €190 million.

The president of Sedigas, Antonio Peris, has been critical of the new figure of premiums and has said that "it does not make sense in these moments of crisis and means assuming an extra cost that nobody has demanded".

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In this sense, Peris stressed that "combined cycles are key for renewable energies", since "they are not always when they are needed, and in these situations the combined cycles have to respond".

On the other hand, before the royal decree of the national coal, "the position of the gas sector is public", the president of Sedigas has said that he does not agree with this decree and that in addition "there is an important concern in the sector that there is a relevant displacement of the combined cycles". This possible displacement would mean the reduction of the consumption of combined cycle gas, which has already experienced a decrease as a result of the increase in renewable energies.

Peris thus responded to the report published by the National Energy Commission (CNE) in which it is considered that the incentive to burn national coal will not cause a significant displacement in gas combined cycles, not so in the case of imported coal plants. Sedigas has reported that the CNE report "is very recent and includes hypotheses" so they are still evaluating it in order to take a concrete position.

FALL IN DEMAND.

As for the demand for gas in 2010 is expected to fall by 2% compared to 10% last year, Peris considers that this figure has been partly the result of the decrease in gas consumption for electricity generation, which represents between 35% and 40% of total consumption.

This decrease in consumption and the economic situation at the international level has meant that the plans that had been set in the next 5 years for gas combined cycles are on "stand by", according to the president of Sedigas. In addition, Peris added that "there is uncertainty about the remuneration of the energy mix and we must wait to see how the sector evolves; at the moment there are no concrete short-term plans."

However, Sedigas expects that the demand for gas in Spain, once the international crisis has been overcome, will recover the growth trend and double, going from 390 terawatt hours (TWh) in 2008 to 818 TWh in 2030. (EUROPA PRESS)

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