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SPANISH WIND POWER SECTOR IN THE CROSSROAD. 2011. IMPORTANT AND CONTINOUS GROWTH OF WIND POWER IN SPAIN. Renewable Energies Plan (2005-2010): 20,155 MW Official Network Planning for 2016: 29,000 MW
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SPANISH WIND POWER SECTOR IN THE CROSSROAD 2011
IMPORTANT AND CONTINOUS GROWTH OF WIND POWER IN SPAIN • Renewable Energies Plan (2005-2010): 20,155 MW • Official Network Planning for 2016: 29,000 MW • Further increase expected for compliance with the goal of 20% of energy demand with renewable technologies 40% -> 38,000 MW.
DEMAND COVERAGE HISTORIC HIGH 9/11/2010 14.962 MWH 43% OF THE WHOLE NATIONAL DAILY DEMAND COVERED WITH WIND POWER! THE MAXIMUM PEAK OF WIND PENETRATION HAS BEEN 54,7% (30/12/2009) Source: REE
THANKS TO GOOD COOPERATION WITH THE TSO AND TECHNICAL INSTITUTIONS CUTS IN WIND GENERATION HAVE BEEN REDUCED
A SOLID INDUSTRIAL NETWORK TO ATTEND THE NATIONAL AND EXTERNAL MARKETS Spanish wind sector industrial centres
A STABLE LEGAL FRAMEWORK HAS BEEN ESSENTIAL FOR THE DEVELOPMENT OF THE WIND SECTOR • The 2007 Royal Decree, in force from 1 June 2007, allows two remuneration options: • Regulated tariff • Market price + premium: with a cap and floor for the premium • Wind farm installations governed by the previous regulation (RD 436/2004) had until 01/01/2009 to decide whether they will continue with it or choose the new RD • Remuneration updated using the RPI, less an adjustment factor (0,25% until 2012, 0,5% from then on)
THE SPANISH FEED-IN TARIFF SYSTEM IS ONE OF THE CHEAPEST IN EUROPE Source: EWEA
THE SPANISH MARKET HAS BEEN THE CHEAPEST MARKET IN EUROPE FOR MOST OF THE LAST TWO YEARS
THE SPANISH FEED-IN TARIFF HAS MADE POSSIBLE THE ACHIEVEMENT OF THE 2010 RES ELECTRICAL OBJECTIVE, AND AS A BONUS HAS ENABLED THE SPANISH WIND INDUSTY TO BECOME A WORLD PLAYER Power 14,4 % of nationaldemand (2009) “For each Euro spent in wind power by electricity consumers the Spanish Economy has got three in return” Exports +7.554 M € Fuel Imports +4.463 M€ PIB Direct + 6.192 M € Monthly contribution to wind power by each Spanish household 3.705 M€ Premiums (Tot. 2007-2009) = CO2 Emissions + 1.035 M € PIB Indirect 4.087 M € Fiscal balance 648 M€ R+D+i 556 M € Jobs 37.900 Average (07-09) Other social benefits Datos 2007-09 9
THE SPANISH WIND POWER MARKET IS SLOWING DOWN ITS GROWTH DUE TO EXCESSIVE REGULATION AND LACK OF LONG TERM STABILITY RD 1565/2010 RD 1624/2010 RDL 14/2010 Ley 17/2007 RD 661/2007 Tarifa regulada prima variable RD-L 7/2006 RD-L 6/2009 RES SEE 19/11 RD 436/2004 Tarifa regulada Prima fija RD 2818/1998 Ley 54/1997 RD-L 6/2000
POLICIES FOR THE PROMOTION OF WIND POWER: IF IT WORKS DON´T CHANGE IT. IMPROVE IT! • The Spanish wind power sector has become a world player THANKS TO THE FEED-IN TARIFF system established in 1998 and the long term vision and security that it has given investors. • The regulatory framework in Spain is currently under revision. • Feed-in tariffs have been the most successful system for the promotion of wind power, they should be kept in place with possible adjustments that take into consideration technological improvements, local conditions and the achievement of the EU REN objectives for 2020 and beyond. (Roadmap 2050)
OTHER CHALLENGES AND OPPORTUNITIES 2020 • USE OF ENHANCED PUMPED STORAGE – RIGHT INCENTIVES TO DEVELOP NEW CAPACITY AND FULL USE OF EXISTING. • IMPROVEMENTS IN FORECASTING: ACHIEVE LESS THAN 5% DEVIATION IN 24H FORECAST. • INTEGRATION OF ELECTRIC CARS IN THE GRID AND AS STORAGE FOR WIND POWER. • DEPLOYMENT OF 3.000 MW OFFSHORE WIND. • REPOWERING: 2.000 – 5.000 MW
CONCLUSIONS • THE SECTOR HAS BECOME A WORLD PLAYER: ACTIVE SPANISH MARKET + AMBITIOUS OBJECTIVES + FEED-IN TARIFF + UTILITIES + TSO + INDUSTRY. • MAIN CHALLENGE IS TO KEEP A COMPETITIVE POSITION IN A GLOBALISED MARKET. • TECHNICAL CHALLENGES 2020: PENETRATION > 50 %, STORAGE, INTERCONNECTIONS. • POLICY-FINANCIAL CHALLENGES 2020: NEW LONG TERM POLICY FRAMEWORK NECESSARY TO ATTRACT INVESTMENTS IN AN INCREASINGLY COMPETITIVE EUROPEAN WIND MARKET. • FEED-IN TARIFF WORKS! IF YOU WANT TO ACHIEVE THE 2020 OBJECTIVES KEEP IT AND IMPROVE IT!