CHP and the Spanish energy reform


2013 together with 2012 will go down in the history of Spanish energy as the worst since 1980, due to the absence of an energy policy which allows any activity at all in the sector. Both renewable energies and CHP were crushed by Royal Decree 1/2012 passed on 27th January 2012 which introduced a moratorium on all ongoing activity.

From that moment on in 2012 no movements were to be seen on the part of the energy ministry until the middle of 2013. That meant 18 months of inactivity and disinformation which have paralysed the entire industry working in special regime facilities in Spain. The justification for this shut down in activity was based on the enormous tariff deficit shown by the system (since 1997) and its significant overcapacity.

The Government’s Economic Advisor, Mr. Álvaro Nadal, described the sector situation to spokespeople from Cogen Spain as: “Not one more MW can fit in the system, and not one euro more can be spent on supporting electricity production”.

Article published in: FuturENERGY January-February 2014