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Spain agrees coal exit amid falling gas prices, higher carbon cost

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Spain’s new government has revised the 2021-2030 Energy Plan, speeding up the country’s coal exit and stepping up solar PV…

Tougher emission rules under the EU Large Plant Combustion Directive will further deter utilities from burning coal. Nine out of the existing 15 coal-fired power units in Spain could “possibly not be in operation” by 2021, if utilities decided to avoid the investment required to comply with tougher EU rules, the government reckons.

Gas-fired generation is also seen to fall slightly in Spain’s revised 2021-2030 energy plan, down from 27.2 GW currently to levels around 26.6 GW in 2030. In contrast, combined heat and power (CHP) capacity could rise 0.7 GW over the same period to reach 3.7 GW.

Massive renewable build-out

Across most of the Iberian Peninsula, the Spanish government envisages a massive build-out of wind and especially solar capacity, having raised its solar capacity target by 2.3 GW to 39.2 GW. By the end of the decade, Spain’s combined wind and solar capacity is meant reach 96.8 GW, making up nearly two thirds of the country’s installed capacity of 160.8 MW.

The revised energy plan is “very final,” the Spanish energy ministry noted, although it still needs approval by the European Commission.


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