Spain reactivates the system reduce emergency electricity consumption for the second consecutive day. Red Eléctrica, manager of the Spanish electricity system, ordered on Thursday – it was also due to do so on Wednesday – the mandatory closure of large industrial plants to quickly reduce electricity consumption in the country and avoid an imbalance due to a lack of sufficient electricity production (due to lack of renewable production) to cover all demand with guarantees and have a sufficient reserve margin.
On Thursday, Red Eléctrica (REE) issued orders to factories to stop consuming electricity at 6.30pm, an order that was extended for three hours. It’s about it is the fifth time that Spain has had to activate its new active demand response system in two years (once last year and now four this year). the mechanism was approved in the midst of the energy crisis by the Government as part of the Energy Security Plan and serves to quickly reduce the high electricity consumption of large industry to avoid serious deviations in the functioning of the electricity system.
Official REE sources deny that there was any risk of a blackout at any timeneither on this occasion nor on previous occasions when the so-called active demand response system (SRAD) has been used, and it is underlined that what the system aims to do is to make adjustments to the electricity market to maintain a sufficient reserve margin to cover all consumer needs and has always worked perfectly.
The new mandatory suspension of activity used the maximum allowed by the demand management system for this year, forcing the brakes on the activity of the 609 megawatts (MW) of power of the large industries that voluntarily participate in this mechanism, and served to save 1,427 megawatt hours (MWh) of electricity consumption, according to data from the Operators information System of the Electricity System (Esios).
During the energy crisis, Spain began to apply a nonew system to reduce emergency light consumption in the event of serious imbalances between electricity production and demand which must be covered at all times throughout the national territory.The new protection mechanism of the electricity system, which replaced the old interruptibility service that operated for more than a decade at billions in costs, allows the mandatory forced closure of industrial plants to reduce electricity consumption.
Looking for factories to stop
Last November,Red eléctrica de España announced a new auction looking for industrial plants or energy companies willing to temporarily stop their activity during 2025 in case of emergency in exchange for a remuneration of one million dollars. Companies had to bid on the auction the amount of electricity they could stop using for a few hours and the price at which they were willing to stop working.
The result of the tender for the so-called Active Demand Response service is that almost twenty large industrial groups will receive a fixed compensation of 283 million euros next year, double that of this year, to which will be added timely payments every once they will be forced to stop working based on the price of the electricity market at that time. Costs will skyrocket as by 2025 the average price of electricity and affected electrical power will increase, and despite the number of hours that factories can be idle will be reduced.
Next year’s remuneration of 283 million is added to the 237 million already paid in the last two years (94.3 million in 2023 and 143 million in 2024). In total, Spanish customers will pay 520 million over three years through their electricity bills to factories willing to stop, in addition to variable payments each time the protection shield is actually activated.
Winning bidders bid 1,148 megawatts (MW) of power and confirmed their willingness to stop operating for a total of 4,371 hours at an average price of 56.43 for their willingness to stop operating. Compared to the results of the previous auction a year ago, the average price rises (it was 40.82 euros per MW and hour), the power involved skyrockets (it was 609 MW), but the number of hours drops (there were 5,745).
How does the emergency electricity consumption reduction system work, and when is it typically activated in Spain?
Interviewer: Welcome to Time.news! Today, we have the pleasure of speaking with Dr. Elena Ruiz, an expert in energy policy and enduring systems. Dr. ruiz, thank you for joining us. There’s been quite a lot of discussion about Spain reactivating its emergency electricity consumption reduction system for the second consecutive day. Could you explain to our readers what this system entails?
Dr. Ruiz: Thank you for having me! The emergency electricity consumption reduction system is a mechanism implemented by Red Eléctrica de España (REE), the country’s electricity system manager. Essentially, it allows the government to mandate temporary shutdowns of large industrial operations to lower electricity consumption when there is a notable imbalance between supply and demand. This system is particularly crucial when renewable energy production dips,which we are currently witnessing.
Interviewer: That’s engaging! So,what triggered the recent activation of this system?
Dr. Ruiz: The recent activation was primarily due to a lack of sufficient electricity production to meet the high demand. In this case, renewable sources, which Spain has been heavily investing in, failed to generate enough power. To prevent potential blackouts or instability in the grid, REE ordered large factories to halt their operations temporarily, which is intended to restore balance and maintain a reserve margin.
Interviewer: This isn’t the first time this has happened, correct? How often has Spain had to implement this system?
Dr. Ruiz: No, it isn’t the first. In fact, this marks the fifth activation of the system in just two years. They’ve had to rely on it once last year and four times this year alone. It underscores the challenges Spain faces in balancing electricity supply and demand, especially during peak consumption periods.
Interviewer: The government approved this mechanism amid the energy crisis, which leads me to wonder: how effective has it been considering these recurring activations?
Dr.Ruiz: It’s been a necessary tool in managing the electricity supply crisis. while the frequent activation might seem like a negative indicator,it reflects both the challenges in achieving energy balance and the increasing energy demand. The system is effective in crisis management—preventing blackouts and maintaining grid stability. However, it also highlights the need for Spain to enhance its energy infrastructure and possibly further invest in energy storage and diversified energy sources, especially renewables.
Interviewer: With these recurring instances, do you think Spain is on track to achieving its goals in renewable energy production?
Dr. Ruiz: Spain has made significant strides in renewable energy adoption, being a leader in wind and solar energy in Europe.Though, these episodes reveal that more needs to be done to ensure consistency and reliability in production. Expanding energy storage technologies and improving the grid’s capacity to handle variable renewable energy will be essential. Ultimately, it’s a balancing act between increasing renewable energy production and ensuring that it is stable enough to meet demand.
Interviewer: What would you recommend as immediate steps for Spain to avoid having to activate this system so frequently in the future?
Dr. Ruiz: Spain could benefit from a multi-faceted approach. First, investing more in energy storage solutions could help buffer the highs and lows of renewable energy production. secondly, expanding the diversity of energy sources—like developing more hydroelectric projects or even exploring nuclear energy—can provide more stability. fostering demand-response technology can help manage consumption more dynamically, allowing consumers to reduce energy use during peak times voluntarily rather than mandatorily.
Interviewer: those suggestions sound promising. as we wrap up, what can our readers take away from Spain’s current energy challenges?
Dr. Ruiz: The key takeaway for readers is that energy transition is a challenging but necessary journey. It requires not just investment and technology but also public understanding and support. Spain’s experience underscores the importance of adaptive strategies in our pursuit of a sustainable energy future. Continuously balancing supply and demand will be crucial as we move forward.
Interviewer: Thank you, Dr. Ruiz, for yoru insights today. It’s clear that Spain’s energy journey is complex and ongoing. We appreciate your time and expertise.
Dr. Ruiz: Thank you for having me! It was a pleasure to discuss these vital topics with you.