"The Spanish underground gas deposits are at 100% of their capacity. In addition, Spain has the capacity of seven regasification plants, which makes us in a situation of complete tranquility regarding supply capacity for the remainder of 2023 and even for 2024". This was the positive message that María Junco, Operations Director of Enagás GTS, sent this Tuesday during her speech at the XIX Annual Cogeneration Congress that the national association of the sector, Acogen, held in Madrid.
Despite the tensions of war conflicts in Europe and the Middle East, the tension in the market for energy cogeneration producers is far from what was lurking a year ago. The European policies of recent months have fulfilled the main objective of guaranteeing supply, which has stopped the escalation in gas prices and, therefore, has slightly increased demand in the industry that can once again be allowed to consume gas.
In this context, the cogeneration industry in Spain expects to increase production this year by 5% compared to 2022, which marked a negative record. A glimpse of recovery that is still insufficient to compensate for the 30% drop that the sector has accumulated in the last two years.
During the day in which nearly 200 businessmen from the sector participated along with institutional, political, industrial and supplier representatives, there was a debate on the importance of this type of electricity generation from gas and with the capacity to dump the surpluses into the general system. It is key to the competitiveness of many Spanish industries. For this reason, Rubén Hernando, president of Acogen, thanked during the inauguration of the event for the change in regulation approved by the Government this 2023 and asked him to, despite the interim situation, advance the new methodology to reward the energy produced in this way. such as those in new capacity auctions.
Some challenges that Jesús Ferrero, deputy director general of Renewable Energies, trusts can be completed by the end of 2023. As far as the remuneration system is concerned, Ferrero has confirmed that, in line with other Government reforms such as electricity, in this In this case, the total remuneration will also be separated from the daily spot market and more weight will be given to long-term contracts.
What may not go so quickly will be the auctions, despite the urgency demanded by strategic industrial sectors such as food and beverages, chemicals, paper, ceramics, refining, textiles or waste in more than 600 factories.. “The auctions planned cogeneration will enable a new cycle of industrial investment that will mobilize more than 800 million euros in hundreds of industries, promoting greater energy efficiency, decarbonization and competitiveness, which will be key to the success of the energy transition of the heat-intensive industry," he said. assured Hernando.
While these reforms arrive, the current cogeneration industries are with the sword of Damocles on their income statements. If the desired reforms and aid do not arrive or the current ones are extended, many will have to close temporarily with the consequent impact on jobs. To avoid these layoffs, they are asking for a more lax regulation that will temporarily allow them to continue cogeneration with gas as raw material, to adapt their facilities to cogeneration with biogas, biomethane and renewable hydrogen, which is the future to which this type of facilities aspire.
