Nuclear power (22,6%), wind power (19,2%) and coal-fired power (17,4%) were the three main technologies for generating electricity in 2017. This reflected a particular combination of renewable and non-renewable energies in the energy mix, the balance of which was affected by climatic and geopolitical factors.
An intense drought, with reservoirs at 38% of their maximum capacity, gave rise to a revival of coal use. The scarce rainfall reduced the contribution of hydroelectric generation to 7,3% of the total in the electrical system. This phenomenon forced demand to be compensated with coal and gas, which contributed 31,1%, that is, almost a third of the energy demand at that time.
Despite the need to use more coal, which meant an increase in energy production, this also brought with it a considerable increase in greenhouse gas emissions, especially CO2, which contradicts Spain's environmental commitments acquired in international agreements such as the Paris Agreement.
Another factor to take into account is the lack of growth in the installed capacity of renewable energies. In 2017, these represented 33,7% of electricity production, a decrease compared to 40,8% recorded in 2016. Wind energy, for its part, managed to maintain a stable share of around 19,2%, the same figure as in 2016, according to Fernando Ferrando, president of the Renewable Foundation.
No progress is made in a future transition
Pedro Linares, professor of Energy and Sustainability at the Universidad Pontificia de Comillas, stressed that the energy transition in Spain is showing signs of being blocked. The dependence on rainwater as a resource for energy generation is a major vulnerability, especially in periods of drought. The lack of rainfall and limited investment in new renewable installations have left Spain's electricity system with few alternatives to fossil fuels.
The problem becomes more acute when hydroelectric power, normally one of the cleanest technologies, suffers a significant decline. In this sense, coal-fired power stations, along with gas, become indispensable, which in turn translates into an increase in CO2 emissions. Professor Linares warns that this situation is unsustainable in the long term and that climate change could make low hydroelectric capacity a constant in the future.
To correct this trend, Linares proposes that Spain develop a long-term strategy aimed at gradually replacing the use of coal and, later, gas with renewable energy sources, with the ultimate goal of achieving complete decarbonisation of the electrical system.
The role of political and economic actors in the energy transition
The authorities, together with energy sector experts, agree that the existing blockage on the path to a more sustainable energy transition with less dependence on fossil fuels must be broken. However, there are many obstacles, such as energy oligopolies and the vested interests surrounding them, which hinder the change of model.
Many experts believe that the development of renewable energy sources must be accelerated to ensure that coal and gas do not remain the immediate solutions in the face of water shortages. They point to the example of some European countries such as Denmark, Germany and the Netherlands, which have not stopped investing in improving their electrical systems. These countries are seeking to abandon fossil fuels and nuclear energy in favour of a system based almost entirely on renewable energy.
In particular, the benefits of moving towards a development model based on renewable energy include a significant reduction in greenhouse gas emissions, greater energy autonomy, long-term cost reduction and global economic leadership linked to clean technologies.
Mega auctions without coal and pool prices
In recent years, the Spanish Government has promoted energy auctions to award new renewable energy projects. This process allowed 2020 new megawatts of renewable energy capacity to be achieved in 8.737, which helped guide the goal of reaching 20% renewable energy in that year, in line with the Paris Agreement.
As for pool prices, electricity production currently costs around 53 euros per megawatt hour (MWh). However, in some regions of the world, such as Mexico, prices have been much lower, around 17 euros per MWh in a recent auction, highlighting the competitive potential of renewable energy when deployed on a large scale.
Despite these advances, several experts in the sector point out that the evolution towards a 100% renewable energy mix is still slow. Technologies such as solar and wind are stagnating compared to other countries, and the lack of concrete plans to permanently eliminate coal and nuclear remains a major challenge.
The future of the electrical system and the need to reinvent the model
The current situation poses a complicated scenario, where renewable energies, although growing, are not able to meet demand in their entirety. The lack of progress in energy storage technology is a limitation that forces us to resort to coal and gas thermal plants at critical times.
On the other hand, nuclear energy continues to be a key source in Spain's energy mix. Proponents of this technology argue that the safety and reliability of nuclear power plants are essential to maintaining the balance of the system while moving towards decarbonisation.
Looking to the future, investments continue to focus on the development of large-scale storage, such as batteries and pumped-storage technologies, which will allow for greater flexibility in the electrical system. However, as long as these technologies are not fully developed, dependence on fossil fuels will continue to be a reality in the short term.
It is essential that public policies and business decisions accelerate this process, to ensure a sustainable, clean and accessible energy future for all. Now more than ever, the transition to an energy mix based predominantly on renewables is both an opportunity and a pressing need.
As electricity demand continues to grow and renewable technologies improve, the key will be to support their deployment through ambitious policies and the integration of storage solutions that guarantee the stability of electrical systems.