Tiles expected before the announcement of public consultations on the cogeneration auction

CASTELLO. He Ministry of Ecological Transition and Demographic Issues announced on Tuesday a move expected by the ceramics industry that comes ahead of recycling 1200 MW auction scheme for cogeneration This requirement has been made since 2021. This was stated by the Director General of the Department of Energy Planning and Coordination of the Ministry, Victor Marcos, during the celebration of the XX Annual Cogeneration Congress, held in Madrid under the motto “Cogeneration, a sustainable future.” for industry.”

President ASpanish Cogeneration Association (Acogen), Ruben Hernandoapplauded the announcement. “We as industries want to start the race to start a new investment cycle with the announcement of auctions that more than 200 industries are waiting for to improve their competitiveness, decarbonization and digitalization,” he said.

In the province of Castellón there are 73 cogeneration plants with an installed capacity of 320 MW. Of these, about thirty came from ceramic industry And They add 226 MW of power.. Latest data provided by the employers’ association Ascer shows reduction in electricity generation at cogeneration plants in the industry by 12% in 2023. They explain the decline by the lack of a “stable and adequate” remuneration system.

Since June last year, cogeneration has had a new regulatory framework in place, which marks the beginning of a new phase, but there has been no call for a new auction. “The time has come to invest, to announce auctions to invest more than 800 million euros in cogeneration, which the sector urgently needs and which has been delayed by the energy crisis,” said the President of Acogen.

As he explained, due to the delay, more than a hundred plants have reached the end of their economic life, unable to technologically and environmentally upgrade their best tool – cogeneration. “In the ceramic sector we will talk about twelve. plants that have expired.

Industry demands to government

According to data released during the 20th Congress, national electricity production through cogeneration has fallen by 35% over the past three years due to the obsolescence of the previous operating structure since 2015. Currently, cogeneration production produces only 6.5%. of national electricity, down from the 11% it produced historically. “A situation that, fortunately, looks set to subside once the new methodology comes into force,” they noted.

The cogeneration sector’s demands on the Ministry are now focused on two points: first, the investment program must be made public before the end of the year, with auctions for 1,200 MW expected from 2021; second, extend the remuneration for operating power plants that are reaching the end of their useful life so that they remain operational until they can participate in auctions.

In 2024, 25% of cogeneration plants (111 industries with a capacity of 850 MW) have reached the end of their statutory useful life and are still awaiting participation in the 1200 MW cogeneration auctions announced three years ago and included in the updated PNIEC since September last year . According to Acogen and Spanish Association for the Promotion of Cogeneration (They take it).

“These auctions are key to competitiveness and the energy transition 20% of industrial GDP companies – 70% multinationals and 60% SMEs – in food, chemicals, paper, ceramics, oil refining, automotive, etc. compete and export 50% of their products,” they insisted during the congress.

The 1,200 MW cogeneration auctions, in which around 200 industries will invest in competitiveness, decarbonization and digitalization, will attract investments of €800 million in cogeneration alone and will serve as a catalyst, multiplying other industrial investments that can establish industrial production in Spain. and achieve increased investment in manufacturing capacity and other energy technologies.

Transitional measure

For this reason, Acogen and Cogen reiterated their demand and stated that this is a “necessary” transitional measure to allow the plants to continue operating until the investment is completed. “Due to the three-year delay in unveiling the investment program, a transitional measure is necessary to allow the cogeneration industries to continue operating until new investments are completed through the 1,200 MW auctions planned at PNIEC and announced in 2021,” they defended.

As explained, extending the operating fee for end-of-life power plants by two years, as was done in 2019, will allow 145 plants with a capacity of 1,100 MW to remain competitive, representing 25% of the sector in Spain. , with 40% of the sector concentrated in Catalonia and 30% in the Valencian Community.