Gas plants urgently need to be paid for serving as a cushion for the electrical system

by time news

2023-07-21 17:38:35

The hello of heat has skyrocketed the use of combined cyclesplants that burn gas to produce electricity. Despite being the second source of generation by installed potency in Spain, its leading role has been rather discreet in recent years, with the exception of those cases in which demand skyrockets or there is a lack of renewable resources, when reappear on the electric stage for avoid a blackout. And ‘free’ life jacket that it is urgent that he be paid for serving as mattress to electrical systemif, as planned by the Spanish roadmap —Integrated National Energy and Climate Plan (PNIEC)— all these plants are to be maintained lit the next decade.

This is how the employers have remembered it this week Sedatesrequesting, once again, the creation in Spain of capacity marketsa luck of parallel market that of energy —where production is remunerated— in which the power stations for his availability in those moments of system voltagethat is, when there is a lot consumption of electricity and, therefore, the renewableas has happened these days, or in situations of scarce supply, that prevent the generation with water, wind or sun, as happened last summer. “Without the combined cycles, the electrical supply he last summer”, warned the president of the Sedigas employers, John Battlein the 49th edition of the annual meeting of the gas associationheld in June.

In the summer season past the reduced hydraulic generation —it was the lowest year in the history of this technology— and renewables, as well as the increase in exports to France after the nuclear shutdown, activated the gas plants. So much so that they became the first generation source of the country in 2022, after a decade (in 2019 they ranked fourth in production, after nuclear power, wind power and coal). Despite that, his utilization rate (ratio between actual production and that which could have been achieved if the plants had operated at their nominal power for the entire time they have been available) was maintained baja (of 34.1%).

Another example, Tuesday July 18when Red Eléctrica required that all units in operation enter to avoid a blackout. And they will be increasingly necessary, in the face of a future electrical system full of renewables, which will force them to stop and start constantly. But that means higher operating and maintenance costs and receiving money only when they are used and having such low utilization makes them economically unviable, as defended by their owners. According to a report from PwC for Sedigas that analyzed the rolling year from August 2018 to July 2019, the 70% of the park of combined cycles has operating losses. They are not able to recover their fixed costswhich compromises your economic feasibility.

until the middle of 2018these plants had, in addition to the remuneration for generation, investment incentives —10,000 euros per megawatt of installed power— and to the availability. The latter paid the facilities for being available when necessary, a figure similar to what they ask to promote again. The Government began the procedures to create some capacity mechanisms in 2021, but to this day they have not yet been approved, much less put into operation. Its creation must have the approval of Brussels to avoid being considered State aid and the Executive defends that the current system is “long, tedious and complicated”, while from the sector they suggest that there could be a push to that procedure.

Time is short

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The discussion has moved to Europa, within the framework of the electricity market reform. The European Parliament has just reached an agreement on its orientation after the proposal, in March, of the European Commission. Brussels encourages design new tools of capacity but within existing regimewhere this mechanism is situated as a last resort formula and limited in time, which is precisely what criticizes the Spanish government. The only thing missing is the Council of the European Union, which is now chaired by Spain and which is made up of the Twenty-seven, to agree on its overall approach on the subject and start, thus, the trilogues or tripartite negotiations to reach a consensus before next year. Both the Government and the electricity companies agree to include this type of mechanism as a structural toolalthough time is short.

“In the case of Spain, regardless of the agreement that is reached, our own mechanism should be approved as soon as possible, in order to avoid problems of security of supply in 2025as provided by the association of European networks Entso-e in a recent report”, insists the partner responsible for regulated sectors, economic analysis and sustainability of the consultancy EY, Anthony Hernandez. Entso-e carries out its risk analysis based on the renewable forecast of the PNIEC and the information provided by Red Eléctrica. And he concludes that in two years Spain could have a real problem of security of supply. In practice this translates into blackouts.

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