BY CONTINUING TO USE THIS SITE, YOU ARE AGREEING TO OUR USE OF COOKIES. REVIEW OUR
COOKIE NOTICE

Register with us today

and in less than 60 seconds continue your access to: Latest news headlines Analytical topics and features Commodities videos, podcast & blogs Sample market prices & data Special reports Subscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

Enter your Email ID below and we will send you an email with your password.


  • Email Address* Please enter email address.

If you are a premium subscriber, we are unable to send you your password for security reasons. Please contact the Client Services team.

If you are a Platts Market Center subscriber (https://pmc.platts.com), Please navigate to Platts Market Center to reset your password.

In this list
Coal

Spain regulator slams decree that would halt power plant closures

Fuel Oil | Marine Fuels

Off-spec Houston bunker fuel sparks contamination crisis

Coal

Platts Global Coal Alert

Oil | Crude Oil

Platts Workshop at the S&P Global Platts Energy

Coal

High-ash thermal coal cargoes on the move to Europe as Qinhuangdao prices bounce back

Spain regulator slams decree that would halt power plant closures

Spain's market and competition regulator CNMC has slammed a proposedgovernment decree which effectively would allow it to block power plantclosures, force their continued operation or oblige generators to sellunwanted plants via auction.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

* Decree allows 'too much discretion, on shaky legal ground': CNMC

* 3 GW of closures would not affect system, report says

* Recommends focus on revising existing closure legislation

The official regulator's report on the draft decree published lateWednesday says that the proposals allow "too much discretion and are on shakylegal ground" and also fall outside of existing national and EU laws.

In November, the government published its proposals to halt plantclosures "if this threatens security of supply or if it might result inunfavorable effects on electricity prices." The move followed an applicationby the country's largest generator Iberdrola, to close its last two remainingcoal-fired plants in Spain, with a combined capacity of 830 MW.

However, in the report, the CNMC estimates that the Spanish system couldeasily absorb the closure of as much as 3 GW of coal-fired capacity by 2020(or one third of existing capacity) without it materially affecting thesystem's balance.

This is firstly because the system has a supply overhang of roughly twicethe peak national demand of 46 GW, but also because a further nearly 9 GW ofrenewable capacity (mostly wind and PV) is scheduled to come online before theend of 2020.

Spain's largest generators have also slammed the proposed decree forbeing unconstitutional and constraining free enterprise.

The owners of coal-fired plants have already been forced to decide whichplants they want to operate beyond a 2020 deadline for emissions compliance,with only a handful having begun work on installing the required emissionabatement retrofits.

One of these, Endesa, has complained that there is still not a clearenough strategy for it to reach conclusive decisions on two of its plants thathave been earmarked for closure.

In its recommendations, the CNMC said that the government should focus onrevising all the existing procedures for opening new plants, mothballingexisting plants and permanent closures.

The report also slammed the proposed method of assigning unwanted plantsby auction to a third party, arguing that if a company decides to close aloss-making plant, any likely investor would share the perception.

The possibility of offering incentives for continued operation would alsolikely contravene EU state aid regulations, it added.

--Gianluca Baratti, newsdesk@spglobal.com

--Edited by Jonathan Dart, jonathan.dart@spglobal.com