Sedigas argues that the Iberian ceiling should offset the true costs of combined cycles and demands the reduction of more energy taxes
The president of Sedigas (Spanish Gas Association), Joan Batalla, has assured that the gas supply for the coming winter is “guaranteed” thanks to the “diversification” of the Spanish system. Battle’s words come just hours after the European Union decided to put a partial veto on Russian oil imports at the end of the year in retaliation for the Russian invasion, and before the community partners’ negotiations to do the same. veto in the case of gas, of which Europe is 40% dependent on Russia.
The head of the gas organization, which is holding its annual meeting in Madrid on Tuesday, recalled that Spain has “a modern and resilient infrastructure” and an increasingly wide range of suppliers, going beyond Russia, from which Spain has barely 8% of the gas. last year. In particular, gas now comes from 14 different countries through the six active regasification plants, which represent 25% of all available in Europe.
In addition, in terms of storage, Spain represents a third of all available reserves in Europe. At present, the system has reserves representing 66% of all available capacity, at a stage of reduced gas consumption at the beginning of the summer. Looking ahead to winter, the EU is recommending up to 80% of available storage, a figure that Spain says will not be a problem to achieve, despite the war conflict in Ukraine and its impact on the energy sector.
The same does not apply to the prices. The president of Sedigas has acknowledged that for the remainder of 2022, the average gas price on the international market will be around EUR 70/MWh. It is clearly lower than the maximum recorded in March, when it reached 210 euros/MWh due to the war, although it will exceed the 2021 reference, when it moved around 40 and 50 euros/MWh, exactly the one proposed by Spain limit and Portugal to Brussels.
Faced with this high cost evolution, Sedigas insists on applying “the European regulations not yet in force”, such as the reduction of taxes, with regard to VAT or the taxation of hydrocarbons. In the first case, the electricity bill has been reduced from 21% to 10% since June last year. Joan Batalla has insisted that the cap on gas price, which the EU is still required to endorse due to “Iberian exceptionalism”, “must recognize the real cost of electricity generation from natural gas”. It refers to the gas used by combined cycle plants, which represent 16% of the total electricity mix “but are essential for security of supply”. “It’s not about aid or a subsidy,” Battle stressed, “but about offsetting the real costs” in a country where there are no natural gas sources of its own.
Sedigas also points to long-term structural measures, such as the commitment to renewable gases to make Spain “a renewable gas hub at European level”. Battle believes that current networks can continue to be used for this renewable product in the future, while also stressing the need to strengthen interconnections with the EU, which are now minimal.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
