Is Spain prepared to dispense with nuclear energy? Renewables and companies are the key

by time news

2023-08-05 12:05:54

After the Government authorized last July the dismantling of the Santa María de Garoña (Burgos) nuclear power plant, the future of this energy is increasingly uncertain despite the fact that companies like Iberdrola would look favorably on extending the life of the reactors to be economically viable. With the Old Continent mired in the debate between pro-nuclearists, led by France, and supporters of 100% renewable energy, such as Germany, the experts consulted by Efe believe that the expiration date of these plants in Spain will also depend on the will of the companies. The cost of producing a nuclear reactor is between 4,000 and 5,000 million euros, and around 30 years are needed to be able to amortize the investment, according to the Spanish Nuclear Society (SNE).

Is the country ready?

Currently, the political sphere is divided between those, such as the PSOE and Sumar, who are committed to the gradual dismantling of this type of facility, and those who, such as the PP and Vox, have an impact on extending their useful life and reopening some. Its fate depends, to a large extent, on the revision of the National Integrated Energy and Climate Plan (Pniec), whose text, in the public consultation phase, will not take its final form until June 2024. For now, the draft contemplates a “orderly and staggered” cessation of exploitation of the nuclear park between 2027 and 2035, which will be offset by the “significant penetration” of renewables with the support of combined cycles, technology that uses gas to generate electricity.

The contribution of nuclear power plants to the Spanish electricity system in 2022 was 20.26%, and accounted for 31.75% of carbon dioxide (CO2) free energy, indicates the annual report of the Nuclear Forum. Without going any further, in the accumulated of this 2023 nuclear is the second technology with the greatest weight in the energy “mix”, 21.5% of the total, only behind wind, which represents 23.7%, according to Red Eléctrica statistics. It is, therefore, a considerable amount still in a context of energy crisis and uncertainty for future markets.

The energy decision

Nuclear power plants could be maintained beyond the scheduled date, but only if the companies want to,” explains Alfredo García, an expert and popularizer, to EFE. The energy companies that operate this type of facility sell at a price well below the market, with the It is a marginalist system that raises them, which means that they do not operate at a loss “Nuclear energy is not cheap, but since it always has to be open, they offer at the minimum price to ensure sales,” clarifies Pedro Fresco, a specialist in energy markets. so since 2019 they had been operating at an average price of about 45 euros per megawatt hour (MWh).

The Nuclear Forum asks that, so that companies can continue operating in the future, their electricity be paid at around 60 euros/MWh, but if the predictions of the operator OMIP are observed, that price will be higher than the market from 2027.

In parallel, and in line with the objectives of the Pniec, in Spain every year more renewable energy is generated, equivalent to one and a half nuclear reactors. Therefore, adds Fresco, if in the next eight years the seven plants that are in operation were closed, this energy could be replaced by renewable energy. A version from which other analysts differ, who warn that renewables still have a weak point, their storage.

¿Nuclear or renewable?

Spain is focused on the dismantling by 2030 of four reactors (the two from Almaraz, Ascó I and Cofrentes) of the seven operating ones, and is openly committed to renewables. For Fresco, in the coming years the country will probably be supplied, for the most part, with these clean energies, also lowering the costs of the system once the initial investments are amortized. Likewise, he believes that if the level of renewables continues to increase as forecasts show, nuclear energy could generate a buffer effect, since production cannot be stopped. This would cause an “uneconomic” situation and a brake on investment in renewables.

For the moment, the owners of the plants, specifically Iberdrola, Naturgy, EDP and Endesa, are leaving the door open to nuclear, as has been seen with the request for renewal of the license for the Trillo plant, which expires on November 17. from 2024, for ten more years.

Of course, for the bet to become general, it will be necessary to see if the adequate remuneration is achieved in the eyes of the sector, as the president of Iberdrola, Ignacio Sánchez Galán, has hinted that he would be “calmer” if there were some plants that, technically, they could continue operating beyond the deadline, although “we would have to sit down and talk about the economic part.”

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