Sánchez Galán, on the green plan: “Without demand, no renewables will be built”

The chairman of Iberdrola, Ignacio Sánchez Galán, has sent a message. “If there is no demand (for electricity), renewables will not be built”, has responded when questioned about the objectives established by the draft of the Integrated National Energy and Climate Plan (PNIEC) presented by the Government at the end of June as a roadmap to promote decarbonization until 2030.In a conference with analysts to account for the half-yearly results, Sánchez Galán has described the plan as “very ambitious” and has pointed out the importance of knowing the levels of electricity demand that will be necessary to address the decarbonization of the economy. “First a demand for renewables is required, and if there is no demand, secondly, investments are not going to be made. That is clear,” he remarked. In his opinion, first we have to know what the generation of demand and the stimulus will be to be able to decarbonize many sectors.” I know it is difficult to do, but what will have to be analyzed in more detail is how demand will grow and see what measures will have to be implemented so that we can decarbonize the different segments and so that supply can match demand, “he added. The Chairman of Iberdrola stressed that the electricity company has been “Pioneer” when it comes to investing in renewables, networks and storage, but has acknowledged that talking about building more than 10,000 megawatts (MW) a year, when current rates are about 5,000 MW, is “very ambitious”. For his part, the CEO of Endesa, José Bogas, said on Wednesday that The objectives of the new NECP “are not realistic”, taking into account “the history and statistics” of the pace of development in the sector. The PNIEC, in public consultation until September and that may undergo modifications, will already be the responsibility of the new executive. The final text should be sent to Brussels in June next year, although the level of ambition of the country is clear by 2030 and the way to achieve it will be one of the main challenges of the legislature. The goal is to reach 62 GW of wind and 76 GW of solar photovoltaic by the end of the decade. Industry sources assure La Información that it is technically viable. Now it remains to be seen how the Executive will encourage private investment to arrive. The current Ministry for the Ecological Transition has prepared a document that estimates that Total investments will reach 294,000 million euros, of which 85% will come from the private sector and 15% will be public, especially driven by European funds (11%). These investments are divided between renewables (40%), energy saving and efficiency (29%), networks (18%) and electrification (12%) and others (1%). On the other hand, Sánchez Galán has commented on extending the useful life of nuclear power plants. The executive has said that Iberdrola respects the closure schedule agreed (2027-2035) with the current Government and that would be open to extending the useful life of the plants as long as they are assured of economic viability.. “Technically it’s possible, while economically it’s a matter of negotiating. So I think that technically and economically speaking it is possible, it is a matter of negotiation. Also, as far as the system is concerned, well, let’s say that I would feel much calmer if they exist than if they do not exist,” he said. Regarding the general elections of 23-J, Sánchez Galán has been cautious and has considered that the rules on energy matters will be dictated from Brussels for the entire European Union. “We are facing a process that will last months. The chambers must be constituted and the new Government must be elected. This will still take a few months and will not be immediately. Once the new Government is formed, we will know the policies that will be implemented. The most important thing is what has to do with energy at European level., i.e. common rules. We are members of the EU and the rules that are going to be applied in Spain are those that are being defended in Europe. The European Parliament has already acted and the official rapporteur (Nicolás González Casares) is a member of the PSOE, which means that the Spanish proposal has been taken into account and approved. We don’t expect them to go outside the EU norm,” he argued. Iberdrola has applauded in the statement of results the reform of the wholesale electricity market of the EU that is underway. The European Parliament has set out a position in favour of boosting the market and long-term procurement, in line with the legislative proposal made by the Commission.