Spain industrial power demand ends weak 2020 on 0.9% uptick

Barcelona — Power demand from Spain's large industrial users ended 2020 with a positive uptick at the end of a year that saw the largest annual decline since the IRE index was launched, data published Jan. 21 by grid operator Red Electrica de Espana (REE) showed.

Power demand from Spanish industrial consumers increased 0.9% year on year in December -- a second consecutive monthly gain -- led by demand from the chemical rubber and non-metallic minerals sectors.

In adjusted terms, Spanish industrial power demand had been in negative territory for 31 months prior to the uptick in November 2020, reaching a sharp trough in April, at the time of the most stringent pandemic restrictions, when it fell 24% year on year.

For 2020, the biggest drag on the index has been the metals sector, which has had to face a number of closures and interruptions in the largest power consuming sector -- aluminum production -- while steel production has also seen a number of interruptions.

Overall, 2020 industrial power demand dropped 7% year on year, which compared with a 10% decline for demand from the service sector, which has yet to recover into positive territory, recording a 6% decline in December -- its 13th consecutive decline.

The measures implemented by Spain to reduce impact of the pandemic particularly hit public transport, meaning power demand from that sector fell 20% for the full year, including a maximum 43% drop in April.

The worst-hit sector in 2020, however, was the hotel industry, with a 44% decline for full year power demand and an 81% drop in April.

REE's index has, since 2009, collated data from 21,500 different consumers who have a contracted capacity above 450 kW and represent around 45% of total national demand.

Spanish power demand overall fell 6% in 2020 to around 250 TWh, although the industrial uptick and cold weather meant an increase of 1% in December to 22.4 TWh, according to REE.

Spain large consumer index for Dec 2020

Source: REE