A new year is starting to get going and with it lots of opportunities to recover optimism and to make the new regulatory framework bring back, once and for all, reasonable profitability for CHP and the industry’s energy competitiveness. It goes without saying that 2013 was a lost year, a dreadful one, for CHP and for all the associated industries using it to manufacture their products. I cannot remember, of the 25 years that CHP has existed in Spain, of a worse year for the business.
This conclusion can hardly come as a surprise, given the uncertainty caused by the long and bewildering crossover from the previous regulatory framework to the energy reform, started nearly two years ago now. Months of uncertainty and fiscal bludgeoning took CHP into the red in 2013, causing productive activity to come crashing down.
A critical situation which has gone on for so long that by the end of summer large numbers of plants had found it unsustainable and had to cease their activity until the new framework enabled them to recover the necessary and reasonable profitability.
Article published in: FuturENERGY January-February 2014