Energy efficiency and industrial competitiveness

AEGE, the Spanish association of energy intensive industries, represents a significant sample of Spain’s basic industry (steel, metallurgy, basic chemical, cement, industrial gases and others). In 2014, basic industry accounted for 12% of the entire consumption on the peninsula. This type of industries pays a very high electricity bill as a result of their high level of consumption. Today, and for the sectors represented by AEGE, the cost of electricity, as a raw material, can amount to 40% of the production cost and in some cases, is more than 50%. Industries can control their productive processes and achieve maximum efficiency in the consumption of electricity. However, in relation to the final price of electricity, the levels of action available to industries to achieve this maximum efficiency are limited.

Given that the final cost of their electric bill largely depends on the volume of electrical energy consumed, factories work hard to reduce their consumption and the amount of that bill, applying actions to all the possible processes: productive (best available technologies, recycling, etc.); and management (energy contracts, implementation of energy management systems, etc.).

To achieve competitive electricity prices and to be able to guarantee participation in global markets, where products including steel, copper, cement are sold, these industries need Spain to also achieve electricity prices that are equal to those enjoyed by their international competitors, both within and outside the EU. Read more…

Fernando Soto, Managing Director, AEGE

Article published in: FuturENERGY July-August 2015