Spain's electricity and natural gas systems in the last few years have ensured a surge in energy supply security and financial stability, according to a report of the International Energy Agency (IEA) on Monday.
The report, Energy Policies of IEA Countries: Spain – 2015 Review detailed areas where Spain can improve its energy portfolio, including pushing for more energy efficiency so as to decouple demand and greenhouse-gas emissions from economic growth. Overall, the report reveals that Spain has also a large, well-diversified power generation fleet and a very reliable power system.
The report notes that Spain’s dependence on energy imports has decreased markedly, thanks to an increase in renewable energy and a decline in imports.
The report states that Spain with oil stocks that are substantially higher than what is legally required and liquefied natural gas (LNG) capacity that is significant by international comparison, the country enjoys robust energy security. In addition to that, Spain has a large, well-diversified power generation fleet and a very reliable power system.
IEA Executive Director Maria van der Hoeven said during a presentation of the report in Madrid on Monday that a new momentum for establishing additional cross-border connections in electricity and gas between Spain and France would boost Spain's energy outlook.
The first new interconnection with France was inaugurated in February 2015, and several more gigawatts of capacity linking Spain and France are being planned.
According to the report, the Spanish government managed to solve the massive imbalance between the electricity system’s regulated costs and revenues.
Additionally, the country applied some key adjustments such as remuneration principles for renewable energy.
'To regain investor confidence, it should also closely follow the principles of transparency, predictability and certainty when revising policies and regulations,' IEA Executive Director added.
According to report, for the country's EU 2030 targets and international climate negotiations, Spain should continue to develop an energy strategy that integrates security of supply, sustainability and internal market dimensions. This can be achieved by playing a bigger role in the European energy market.
Finally, among its key recommendations, the IEA report calls for the development of long-term energy strategy covering all sectors, reforming energy taxation and introducing greenhouse gas reductions and energy efficiency improvements while maintaining a strong long-term commitment both to balancing the costs and revenues in the electricity and natural gas systems.
By Gulsen Cagatay
Anadolu Agency
gulsen.cagatay@aa.com.tr