POWER June 2011 - 37

POWER POLICY
seconds, CECRE analyzes connectivity and
wind speed from all wind farms rated at 10
MW or more and uses that data to calculate
wind-powered generation levels. It also assesses
the real-time risk of a sudden loss of
or surge in wind power.
Still, every day brings new challenges.
On Nov. 9, 2009, for example, Spain's wind
farms generated record power-315,258
MWh-enough to meet 43% of demand (at
around 2 a.m.). Earlier, on June 26, at 10:32
a.m., wind farms barely covered 1%. Intense
fluctuations are dealt with by using pumped
storage plants as much as possible while
switching off CCGT plants on a daily basis.
" Spanish legislation gives priority to renewable
energies when it is possible and
secure, " María Pachón, REE spokesperson,
told POWER in March. " Red Eléctricas' role
consists just of putting into practice [the Industry
Ministry's political] decisions under
secure conditions. " Solutions being considered
in the near term include international
interconnections, using surplus wind for
pumped storage, and, in the long term, charging
electric vehicle batteries.
Meanwhile, Spain is pressing on with
plans to build new transmission links. Currently,
the grid is divided into primary (at
least 380 kV) and secondary (220 kV to 380
kV) transmission networks composed of
over 35,797 kilometers of transmission lines
and more than 3,000 substations. It also has,
through the 2007-created integrated Iberian
electricity market (MIBEL), interconnections
with France, Portugal, Morocco, and Andorra,
equal to some 5% of generating capacity.
The Energy Infrastructure Investment Plan
(2008-2016) calls for projects developing
the 220-kV and 400-kV networks, including
a high-voltage power link between the mainland
and the Balearic Islands and reinforcing
international links with France and Portugal
(with whom Spain plans to exchange, at minimum,
3,000 MW).
Key Challenges Remain
Spain must monitor and resolve the key challenges
posed by the large, rapid development
of renewables-striving, above all, to " balance
objectives of environment, competitiveness,
security of supply and efficiency in its
policy formulation, " says the IEA in a 2009
country analysis.
It should also end a mechanism that uses
capacity payments as a substitute for marketbased
incentives to build new generation capacity
because it tends to lead to inefficient
investment decisions, the agency says. These
payments provide participants with the " perverse
incentive of withholding their plans for
new capacity in order to receive the payment, "
and are " complex " to administer. Another
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37
critical needed improvement is to increase retail
prices and resolve government-incurred
tariff deficits of up to €16 billion.
The country's emphasis on the long-term
integration of renewable power is commendable,
the IEA said, but it is crucial that the nation
establish clearer policies regarding other
sources, such as nuclear. It also must ensure
a streamlined and transparent siting and permitting
process that includes interconnection
to the grid for renewable developers.
Another concern is that the nation has not
adequately assessed the need to build and
operate backup capacity to compensate for
the unavailability of intermittent renewable
sources. CCGTs were and will continue to
be the best option for peak-load supply and
backup capacity, but they increase greenhouse
gas emissions and raise security-of-supply issues
owing to the volatility of international
gas markets.
" Uncertain policies are bound to affect the
investment climate, " the IEA concluded. ■
-Sonal Patel is POWER's senior writer.
http://www.powermag.com
POWER June 2011

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