CHP in Spain 2014. The sector reinvents itself following the biggest adjustment in its history

The energy reform has caused a brutal adjustment in the field of CHP, leaving the sector seriously impacted with more than one hundred plants stopped and a slump in production of 20%. However, cogeneration is looking to reinvent itself in 2015 so that it can continue to provide a service to industry that is today more necessary than ever to reindustrialise the Spanish economy and stimulate employment.

At the end of 2014, the export of electricity from CHP to the electrical grid had dropped significantly, down to 21.5 TWh, compared to the 26.9 TWh recorded a mere two years ago. This fall in production has accompanied the definitive closure of some 10% of CHP plants. Of more concern is the general uncertainty affecting almost half the industries in the sector that are still waiting for the implementation and finalisation of the new regulations regarding fundamental yet still pending aspects. These industries have to decide if they will be able to continue production or definitively stop their activities as it will be impossible for them to compensate for rising energy costs.

The situation of Spain’s highly efficient CHP facilities, following the application of the new fiscal framework, implemented in June 2014, is truly complex. However this reality is neither set in stone or irreversible, which is why ACOGEN is going to continue working actively so that the pending regulations are concluded in such a way that active plants can still provide support to associated industries and so that businesses can successfully adapt and compete within the new framework.

Antonio Pérez Palacio
President of ACOGEN, the Spanish Cogeneration Association

Article published in: FuturENERGY January-February 2015