The Plan Renove and CHP

Urgent measure pending from the regulatory development of Act 24/2013

The reasons behind requesting a Plan Renove for CHP are nothing new; rather they are same ones as were submitted for approval at the end of 2010, which lasted little more than a year. CHP is a mature technology in which over half its still operative capacity, around 2,000 MW, is now over 15 years old. Added to this circumstance is the fact that it has not been possible to reinvest since 2012 due to the paralysation of all investments brought about by Royal Decree 1/2012, resulting in CHP being unable to adapt to current technology that would allow it to comply with new environmental requirements that drastically reduce emissions and that will become mandatory as from January 2016.

Act 24/2013, around which the recent energy reform revolves, already anticipated this need in its 20th Additional Provision “Plan Renove for CHP and waste facilities”. This cannot be further delayed otherwise we run the risk of allowing these installations that guarantee the energy efficiency and competitiveness of Spain’s strategic industry to become inoperative.

Cogen Spain believes it is reasonable to consider extending the useful life of existing installations up to the 25-year lifetime established by the new regulation. However mechanisms must be in place to adapt them so that they comply with the technological needs of any time, improving the industrial competitiveness that has suffered from the impact of years of recession. The promotion of these investments in new productive units brings stability to the industry, making it sustainable through long-term measures, independently to other one-off supports that are implemented through taxation or other short-term strategies that flatten out energy costs at specific moments. Read more…

Cogen España

Article published in: FuturENERGY May 2015