Agenda
Challenges
Spain’s energy balance depends strongly on imports. Import dependency is above the EU-27 average. A large percentage of imports consist of oil and gas, covering an 88% of total imported energy. Algeria is the main source of imported natural gas for Spain (through a pipeline and by LNG delivery). Nigeria is also a major supplier, both for gas (LNG) and crude oil. Significant quantities of oil are imported from the Russian Federation and Mexico.
The domestic production of Spain is mainly focused on nuclear energy, whose share (50%) is much higher than the EU-27 average of 28%. The share of renewable sources has increased substantially since 1990 being far above the EU-27 average of 12%. On the other hand, the production of solid fuels (mainly coal and lignite) used to be quite important in the past but has since declined and is slightly below the EU-27 average (22%).
Political
Most of Spain's main political parties, including the governing Socialist Party, have agreed the country's operating nuclear plants can run longer than 40 years. The move could have major implications for Spain, which has a long- standing official opposition to continuing with nuclear power in the country.
Platts
A new energy strategy to raise self-sufficiency at an affordable cost was to be delivered before the summer break [of 2010]. But the government, which is aiming to erase the tariff deficit by 2013, has not yet presented any sort of plan.
Critics say that in trying to please everyone, Prime Minister José Luis Rodríguez Zapatero is pursuing conflicting goals.
The government must restructure the energy sector completely as the current situation is unsustainable,” said Mr. Diaz-Rato, the fund manager. “But this is politically very hard, as all stakeholders will need to suffer, and the government has little political capital to spend.
Status
International Standing
Since the last in-depth review in 2005, Spain has made substantial progress in its energy policy. It is in full compliance with IEA oil security requirements and leads in gas diversification and LNG development in Europe. Together with Portugal, it has set up the common Iberian electricity market, MIBEL, and has strong ambitions in developing it further. It has also improved the system of end-user tariffs for gas and electricity. Spain is determined and successful in promoting renewable energy and puts increasing emphasis on improving energy efficiency.
Spain is exemplary also in developing wind power. Its generating capacity is the third highest in the world and will continue to grow fast.
Import/Export
Spain depends on imports for 78.5% of its TPES, including for practically all oil and natural gas and most coal.
a. Domestic production of oil is negligible and in 2008, 99.8% of all oil was imported. Crude oil imports totalled 58.5 Mt and came from more than 20 countries.
b. Spain imports more than 99% of its gas needs.
c. Imports accounted for 73% of coal supplies in 2007.
d. Spain has no domestic enrichment capacity and imports the enriched uranium needed to fuel its nuclear power plants.
Spain’s natural gas market development deserves particular praise. The share of imports from any given country has been reduced to 50% of the total.
Taxes
Spain supports renewable energy development through premiums for electricity, investment subsidies and tax incentives for biofuels in transport.
Spain levies excise taxes on oil products and electricity. Energy products are also subject to a 16% value-added tax, but it is fully refunded for industry, electricity generation, and automotive diesel used for commercial purposes. Biofuels are exempted from tax. Generally, taxes are used for fiscal purposes and do not include a specific environmental component.
Excise tax on electricity use in industry and households amounts to close to 5% of total end-user price. Excise taxes on gasoline and diesel are relatively low.
Spain has a derogation of the EU timetable to raise minimum taxes on automotive diesel. Excise tax has been EUR 0.302 per litre since the beginning of 2007 (beginning of 2010 for Spanish truckers), three years later than the EU. It will rise to EUR 0.33 per litre by 1 January 2012 as opposed to 1 January 2010 in the EU.
To encourage buyers to favour low-emission cars, Spain introduced at the beginning of 2008 a CO2-based vehicle registration tax on new cars.
Institutional Structure
Ministry of Industry, Tourism and Trade
The Ministry of Industry, Tourism and Trade is the department within the Spanish general administration responsible for proposing and carrying out government policy in the areas of industrial development and innovation, trade policy, small and medium sized enterprises, energy and mining, tourism, telecommunications and the Information Society.
Ministry of Industry, Tourism and Trade
Agencies
The ministry is supported by several semi-independent bodies, including the following:
a. The National Energy Commission (CNE) is the sectoral regulator for the electricity, natural gas and oil markets.
b. The Institute for Energy Diversification and Saving (IDAE) runs activities to increase public knowledge and awareness.
c. The Strategic Reserves Corporation (CORES) is the stockholding agency in charge of managing and maintaining minimum-security stocks of crude oil, oil products and natural gas.
d. The Nuclear Safety Council (CSN) is the competent body in matters of nuclear safety and radiation protection.
IEA
Composition
Use
Electricity consumption has grown by about 5% per year since 1980; nearly double the growth rate experienced within the EU as a whole. The electric power system is fairly diversified compared to other EU countries. The largest share – about 37.5% – of Spain’s electricity generation comes from solid fuels, which is Spain’s major domestic energy resource, aside from nuclear energy. Nuclear, gas, hydroelectricity, oil and wind provide nearly all of the remainder.
There is also a small amount of production from biomass and waste. The hydro contribution fluctuates annually and seasonally, which impacts not only the other sources but also the share of imports and exports. Discounting nuclear energy, other forms of renewables accounted for 28.8% of energy generation in 2005.
RICS
Research and Development
Government Plans
The Ministry of Science and Technology was created in April 2000, with responsibility for energy research and development nationally. Government plans for research and development have become more important in this respect, demonstrated by the National Plan for Scientific Research, Development and Technological Innovation for the period 2000-2003.
The Technological Programme for Energy R&D (TEIDE), within the National Plan, provides R&D strategies specifically for the field of energy. Energy-related R&D objectives focus on developing the use of less polluting energy systems, including renewable energy, and promoting economic and efficient energy production and use in a competitive framework.
RICS
Distribution
Power Grids
The Spanish electric business has suffered a major overturning with the market liberalisation started on 1997. RES [Renewable Energy Sources] generation is still far from EU objectives but has been a growing sector especially with the wind generation boom that started on late 90’s. In RES growth the major addition to the Spanish generation system have been more than 9000 MW of wind energy installed in Spain and government plans give a 20000 MW of installed capacity for year 2010.
This increasingly important wind energy penetration has grown concerns on Transmission and Distribution system operators on how this will affect the grids they operate and maintain. For this reason a correct and optimum RES & DG [Distributed Generation] technologies interconnection legislation is needed.
Fraunhofer Institute
Transition to Globalisation
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Transition to Political Tools
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Political Tools > Regional > Europe > EU > Dom. Policies > Economy > Infrastructure > Transport
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Transition to Political Actors
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Political Actors > Civil society > NGOs > Energy
Business News America
