After almost four months of almost total stoppage, the existing electrical cogeneration plants in Spain have restarted. They have not all done so, only 50% of the total, but their activity represents 75% of the power provided by this technology. It is the result of the Government allowing this type of energy to benefit from the gas compensation recognized by the mechanism of the Iberian exception, approved on June 15.
Cogeneration plants produce electricity with greater efficiency in the use of gas compared to the production of combined cycles. In total, just four days after the authorization came into force so that they can receive compensation for the use of the gas they use, 75% of all the plants have taken advantage of this mechanism, although not all have been able to start up yet. This has been confirmed by the employers of the sector, Acogen and Cogen, who held their annual congress in Madrid on Tuesday.
The start of the first days allowed the rebound in production, although it still stands at 42% of the activity level of last year. It is expected that in the remainder of the month another 25% of the plants will be incorporated into the mechanism, so that in November the contribution of this energy, more efficient in the use of gas, can be analyzed, which should reduce the presence of cycles combined in the production of electrical energy that has skyrocketed since the start-up of the Iberian exception.
In any case, 25% of the cogeneration plants will remain closed as they continue to be unprofitable at current gas prices in international markets. They are the smaller ones, those located on the islands and especially those in the olive grove and slurry sectors.
In order to activate these plants, the president of Acogen, Rubén Hernando, asked the Government to "finish the promulgation and strengthening of the remuneration for the operation and the evolution of the remuneration system of 2023". As he explained, "the publication of the pending remuneration is essential so that the cogeneration plants that are not sufficiently covered by the capping mechanism can evaluate and recover their operating costs as soon as possible and reactivate their production levels, further reducing consumption of natural gas in the country and boosted the industrial economy and associated employment”.
For his part, Julio Artiñano, president of Cogen, pointed out that “monthly price signals would even be necessary”, which are closer to the strong volatility to which the gas market is subject.
Finally, both demand that the Ministry accelerate the specific energy auctions for this sector and that have been pending for more than a year. “The approval of the auction framework, the draft of which was published on December 28, is essential so that operators in the sector can provide the necessary resources to attend these, thereby complementing the regulatory signal that allows decarbonizing current facilities with criteria of efficiency to support the industry in our country”, assured Artiñano.
