Ribera yields to industry before contingency plan cuts

The Minister of Ecological Transition chooses to recover the mechanism of interruptibility, which was knocked down by Brussels two years ago.

The contingency plan designed by the Government is still preparing for its launch before the end of September. Meanwhile, the various sectors of the economy remain cautious about the energy saving measures imposed by an executive who has been talking during this month with some of the affected sectors. One of them is the electro-intensive industry. Thus, the Minister of Ecological Transition, Teresa Ribera, yields to the pressure maintained last summer by the latter, granting the ‘restoration’ of the interruptibility mechanism (which overthrew the EU two years ago and which allows the industry to receive aid in exchange for stopping its consumption at specific times).

Brussels last week called for an interruptible demand. That is, industries consumed less (compared to previous years) in order to receive compensation. However, the minister seems not to have opted for that option marked by the EU and has opted to let Spanish industries consume until the moment in which they are urged to stop in a timely manner. A break for which they will receive a remuneration.

Thus, Ribera restores interruptibility, so criticized years ago by the European Commission. The EU not only criticized the capacity payments that existed in our country for going exclusively to generators, but also attacked the interruptibility because it was an ‘ad hoc’ payment for industries. To this end, it urged, through a regulation in 2019, to create a capacity mechanism that would integrate generation and demand so that there were instruments available at peak times to cover these imbalances between supply and demand, rejecting, in addition, the existence of two autonomous mechanisms that fulfilled the same function.

Yesterday, the Council of Ministers approved the creation of a return to the interruptibility mechanism. According to Ribera, it will increase the flexibility and security of the electrical system. A service, similar to the last interruptibility mechanism, which will allow electrointensive companies to receive remuneration in exchange for stopping their production at specific times to ensure the country’s energy supply.

From the association of consumer goods industries they assure that “it makes a lot of sense that the interruptibility mechanism is now in Spain. Neighbouring countries have it. In fact, Portugal had a very similar mechanism – with almost the same remuneration – that we had before they took it away from us. In situations like the ones we are suffering from stress and supply risk, this tool is designed for it.” This interruptibility mechanism was already created in 2013 with the Popular Party until Brussels knocked it down. Since then this mechanism has been a constant request by the sector.

From the association confirm the contacts maintained with the Ministry. “We have spoken with the entire chain of command of Ecological Transition. We had already asked for it before this critical situation because there were already reports that warned of extreme situations where blackouts could occur. For now it seems opportune, it responds to a long-requested request.”

Between the interruptibility proposed by Ribera and what Brussels is asking for, from the electro-intensive industry they affirm that both options are “blessed”: “One is blessed by the European Commission, while the other is blessed by the member state itself.” In any case, from the industry they defend this mechanism from the demand side (theirs). “The demand is necessary to provide the flexibility of a system that with large contingents of renewables – which are not manageable and that do not have firmness (as nuclear energy can have) – need a rapid response element in case of failure of that renewable energy generation.”

Source: La Información