Europaudvalget 2017
KOM (2017) 0688
Offentligt
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EUROPEAN
COMMISSION
Brussels, 23.11.2017
SWD(2017) 393 final
COMMISSION STAFF WORKING DOCUMENT
Energy Union Factsheet Spain
Accompanying the document
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE, THE COMMITTEE OF THE REGIONS AND THE EUROPEAN
INVESTMENT BANK
Third Report on the State of the Energy Union
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{SWD(2017) 414 final}
EN
EN
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Energy Union
Spain
Spain
Energy Union factsheet
1
1. Macro-economic implications of energy activities
Energy and transport are key sectors for the overall functioning of the economy as they provide an
important input and service to the other sectors of the economy. Together, the activity in these two
sectors
2
accounted for 7.4 % of the total gross value added of Spain in 2015. Similarly, their share in
total employment
3
was 4.6% in 2015, of which 4.3 % in the transport sector and 0.3 % in the energy
sector.
Value added of the sector as % of total
economy gross value added
Employment in the sector as % of total
employment
Energy&Transport as % of total employment:
Energy&Transport as % of total GVA:
6,17
16
14
12
10
[%]
7,37
6,64
6,88
10
9
8
7
6
[%]
4,82
4,62
5,57
5,46
8
6
4
5
4
3
2
1
0
2
0
2005
2015
ES
2005
2015
EU28
2005
2015
ES
2005
2015
EU28
Energy
Transport
Energy
Transport
(source: Eurostat)
According to EurObserv'ER, in 2015, the share of direct and indirect renewable energy related
employment in total employment of the economy in Spain was at about 0.38 %. The turnover of the
renewable energy industry in the same year was estimated at around EUR 13.48 billion, the largest
part being attributed to heat pumps (40.8 % of total renewable turnover), more than one third to
wind (33.38 %), followed by biomass (11.35 %) and biofuels industries (6.88 %).
1
The indicators used in this country factsheet largely build on indicators developed for the Commission Staff
Working Document "Monitoring progress towards the Energy Union objectives
key indicators"
(SWD(2017) 32 final)
https://ec.europa.eu/commission/sites/beta-political/files/swd-energy-union-key-
indicators_en.pdf
2
Gross value added and employment in NACE sectors D-Electricity, gas, steam and air conditioning supply and
H-Transportation and storage
3
National Accounts, Eurostat
1
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Energy Union
Spain
(source: EC based on Eurobserv'Er and Eurostat)
The decarbonisation of the energy and transport sectors will require significant investments and
economic activity beyond the remit of these sectors themselves. The energy transition implies a
structural shift in economic activity. Energy-related investment and jobs will in part migrate from
traditional fossil fuel based activities towards construction, equipment manufacturing and other
services related to the deployment of low carbon and clean energy technologies. At the moment, the
efforts related to the low-carbon and clean energy transition in sectors beyond energy can only be
partially quantified and are therefore not included in this analysis.
An indication of the level of efforts and challenges encountered by Spain in the energy sector is given
by the Gross fixed capital formation (GFCF)
4
. Investments in the electricity and gas sectors, which are
taken as reference sectors, have been on an increasing trend since 2010. They represented around
1.8 % of the country's GDP in 2014, higher than in the pre-crisis period and marginally lower than its
peak in the previous year (2.1 %).
GFCF in energy as share of GDP, Spain*
2,5%
2,0%
[% GDP]
1,5%
1,0%
0,5%
0,0%
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
*
GFCF=Gross
fix capital formation
(source: Eurostat)
Gross fixed capital formation consists of resident producers´ acquisitions, less disposals, of fixed tangible or intangible
assets. This covers, in particular, machinery and equipment, vehicles, dwellings and other buildings. It also includes foreign
direct investment (FDI). Steam and air conditioning supply are also included in the figures mentioned above as Eurostat
reports electricity, gas, steam and air conditioning supply together.
4
2
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Energy Union
Spain
In terms of trade, Spain is a net importer of fossil fuels, mainly of oil and gas. The trade deficit in
energy products has fallen from about 3.2 % of GDP in 2006 to 2 % in 2015, influenced by
improvements in energy efficiency and an increase of domestic renewable energy sources and by
falling fossil fuel prices. The largest decrease as a percentage of GDP is accounted for by petroleum
products, followed mainly by coal and gas.
Trade balance of energy product and current account
balance
Trade balance of all energy products [%GDP]:
-3,20
-2,00
-2,24
-1,69
4,0
[% of GDP]
2,0
0,0
-2,0
-4,0
-6,0
-8,0
-10,0
2006
2015
ES
Gas
Oil
Coal
Electricity
2006
EU28
2015
(source: Eurostat)
2. Energy security, solidarity and trust
2.1. Energy Mix
In comparison to the average primary energy mix in the EU, Spain's energy mix has a higher share of
renewable energy (13.7 % vs 13 %) and a lower share of nuclear energy (12.2 % vs 13.6 %). Natural
gas is close to EU average (20.2 % vs 22 %). Oil has a stronger presence (42.8 % vs 34.4 %) and solid
fuels are below EU average (10.9 % vs 16.2 %).
2015 ES: Energy mix*
GIC - total:
GIC - energy mix*:
121,4 Mtoe
121,4 Mtoe
2015 EU28: Energy mix*
GIC - total:
GIC - energy mix*
1627,5 Mtoe
1626,2 Mtoe
0,2%
waste
13,7%
renewables
12,2%
nuclear
20,2%
natural gas
42,8%
oil
0,8%
waste
13,0%
renewables
13,6%
nuclear
22,0%
natural gas
34,4%
oil
16,2%
solid fuels
*energy mix as share
share in GIC-excluding electricity and derived heat exchanges
,
GIC=gross inland consumption
10,9%
solid fuels
(source: Eurostat)
3
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Energy Union
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2.2. Import dependency and security of supply
Spain has an import dependency above the EU average for fossil fuels, as well as more specifically on
gas and oil although it is a net exporter of refined products. 73.3 % of Spain's energy consumption
comes from imports, quite above the EU average, mainly due to its reduced indigenous production of
gas and oil. However, Spain has one of the highest levels of gas and oil supplier diversification in
Europe.
Import dependency
absolute change 2005-2015 [pp]
1,9% -8,1%
12,0% -4,5%
7,2% -0,5%
8,4% 3,8%
2015: Top non-EU suppliers for main energy carriers*
Natural gas
Crude oil and NGL
Hard coal
ES
Algeria
59,7%
Nigeria
11,9%
EU28
Russia
37,3%
Norway
32,8%
Algeria
10,7%
ES
Nigeria
16,7%
Mexico
13,7%
Saudi
Arabia
10,5%
EU28
Russia
28,8%
Norway
12,4%
Nigeria
8,3%
ES
Colombia
33,5%
Russia
21,5%
Indonesia
20,6%
EU28
Russia
29,1%
Colombia
24,3%
United
States
16,0%
96,9%
73,3%
69,1%
80%
40%
0%
54,0%
64,1%
78,2%
120%
88,4%
99,5%
EU28
ES
EU28
ES
EU28
ES
EU28
ES
total energy
carriers
natural gas
2005
crude oil and NGL
2015
hard coal
Qatar
9,3%
*share in total imports for the MS and in total non-EU imports for the EU28
(source: Eurostat)
The security of gas supply Regulation requires that, if the single largest gas infrastructure fails in one
Member State, the capacity of the remaining infrastructure is able to satisfy total gas demand during
a day of exceptionally high gas demand. Spain complies with the N-1 rule and benefits from a reliable
and extensive internal infrastructure.
ES
N-1 rule for gas
132,0%
2016
threshold 100%
(source: gas coordination group)
4
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3.
Internal market
3.1. Interconnections and wholesale market functioning
3.1.1. Electricity
(
source: EC services based on ENTSOE
and European power exchanges)
source: EC services based on Eurostat
source: EC services based on Platts
In 2017, the electricity interconnection level
5
of Spain was 5.8 %, calculated based on import
capacity, well below the 2020 target of 10%. The electricity interconnection capacity with France is
only 2.8 GW, despite the commissioning in 2015 of the EU co-financed Santa-Llogaia Baixas line.
Regarding the connections with Portugal, the electricity interconnection which will increase the
current interconnection capacity level to 3.2 GW, will be completed by 2018.
However, Spain remains insufficiently connected with the EU electricity market and cannot fully reap
the benefits from a real and effective EU internal market. This has negative consequences for
Portugal as well.
With respect to electricity, three projects of common interest- the Biscay Bay project and two other
additional projects across the Pyrenees- have been given priority in the Madrid Declaration signed in
2015.
The Biscay Bay project, France
Spain interconnection between Nouvelle Aquitaine (FR) and the
Basque country (ES) will bring the interconnection capacity between the two countries to 5000 MW
by 2025 and Spain close to the 10% target.
The two planned projects for increasing the interconnection with France through the Pyrenees with
estimated commissioning date on 2026, will increase the interconnection up to 8.000 MW.
5
The interconnectivity level is calculated as a ratio between import interconnection and net generation capacities
of the country (i.e. the 2017 value is the ratio between simultaneous import interconnection capacity [GW]
and net generating capacity [GW] in the country at 11 January 2017, 19:00 pm as resulted from ENTSO-E
Winter Outlook 2016/2017)
5
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Energy Union
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Concentration of the power generation market is below EU average (969 vs 3726). Wholesale
electricity prices are slightly above the EU average. The electricity market could further converge and
integrate with the wider European market, especially concerning intraday and balancing markets,
once the adequate level of interconnections is in place.
Although Spain is integrated with the rest of Europe through the Price Coupling of Regions (PCR)
project using the Euphemia (Market Coupling Algorithm), the Day-Ahead prices are quite above other
EU countries. Therefore, advancing the integration of intraday or balance market will not bring
benefits if they are not accompanied by an increase in the capacity of the interconnection with
France.
Following the obtaining of 3.25 million euros of European co-financing within the framework of
Connecting Europe Facility, RTE and REE defined the technical parameters of the project and jointly
prepared the request for construction and environmental permits, in line with the requirements
stated in the Annex VI.5 of the Regulation EU No 347/2013.
3.1.2. Gas
Concentration on gas supply markets continues to improve although with ratios lower than the EU
average. If in 2015 the market concentration index for wholesale gas remained significantly lower
than the EU average (3 295, as against 4 771), this level has increased since 2011 indicating a
decrease in competition.
(source: ACER for the left graph and EC services based on on Platts, gas hubs, ESTAT for the right graph)
MIBGAS ("Mercado Ibérico del Gas" Iberian Gas Market) started its operations in December 2015, as
the operator of Spain's organised gas market and with the aim of achieving in the future one single
market with Portugal, similarly to the electricity sector (based on bilateral agreements between both
Member States). During its first year of operation, progress has been made, but MIBGAS liquidity is
still far below the liquidity levels of the main European gas hubs (only 2 % of the domestic demand
was negotiated in MIBGAS in 2016). In this regard, several measures have been taken to increase
market liquidity, including the appointment in January and June 2017 of a market creator (Gunvor
International BV followed by AXPO IBERIA S.L.) As a result, liquidity has more than doubled in 2017,
reaching 4.1% of national demand. Based on the future evolution of the market liquidity, the
Hydrocarbons Law envisages the establishment of additional market creation obligations on
dominant companies.
6
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Energy Union
Spain
Projections based on the latest PCI list (2015) indicate that investments in energy infrastructure are
expected to peak in 2019-20 and continue on a sustained level. In particular, new energy
interconnections are foreseen, with 2 gas PCIs being commissioned post-2020 (Midcat and the 3rd
interconnection between Spain and Portugal) and 4 new electricity interconnections, (electricity
PCIs) by 2025: Biscay Gulf, two projects in the Pyrenees and a new interconnection between Spain
and Portugal.
3.2. Retail electricity and gas markets
3.2.1. Electricity
In 2015, households' electricity prices in Spain were above the EU average. Between 2013 and 2015,
average band retail electricity prices for households remained stable.
Spain has a high annual switching rate by consumers from one electricity supplier to another, well
above the EU average.
Spain is implementing a full roll-out of smart meters. In 2015, about 50 % of final customers had
installed an electricity smart meter, and by the end of 2018 all household consumers will have a
smart meter.
(source: ACER)
(source: Eurostat)
(source: Eurostat)
3.2.2. Gas
Gas represents an important share of households' energy consumption. Since the inauguration of
the MIBGAS market in December 2015, a daily-based reference price is being published, although the
low market liquidity needs to be further increased.
Domestic retail prices for gas are for all consumption bands amongst the highest in Europe. However,
between 2013 and 2015, average band retail gas prices for households decreased (-4 %) more than
the EU average. Since 2013, the level of taxes and levies in household gas prices has remained stable
and slightly lower than the EU average.
7
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Energy Union
Spain
Annual switching rates among household consumers have substantially decreased for gas (from 19 %
in 2011 to 11.1 % in 2015), but remain well above EU average.
(source: ACER)
(source: Eurostat)
(source: Eurostat)
3.2.3. Market performance indicators
According to the periodical survey of DG JUST, the Spanish consumers are less satisfied than the EU
average about the services received on energy retail markets.
(source: DG JUST survey)
3.3. Energy affordability
In Spain, the share of energy in total household expenditure is below the EU average.
The cost of energy weighs on some categories of poor households. The percentage of population
unable to keep their homes adequately warm (in the population at risk of poverty) increased
between 2005 and 2015 (from 17.1 % to 23.3 %, above the EU28 average) due to the economic
downturn.
8
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Energy Union
Spain
In 2015 with the upward economic cycle and the energy reform, the burden of energy costs for
Spanish households started to decrease, after the increases recorded between 2008 and 2014.
However, it continued to increase for low income households with children, as one in four still
experienced difficulties in paying utility bills and keeping their home warm (EU-SILC 2015).
Nevertheless, more than 2.4 million of households have been eligible in 2014 and 2015 for the
electricity social tariff. In October 2017, the criteria of the social tariff were amended with a view to
better targeting low income households and strengthening the protection of vulnerable consumers.
(source: ad-hoc data collection of DG ENER based on HBS with the support of Eurostat and national statistics)
4. Energy efficiency and moderation of demand
Since 2005, Spain decreased its primary energy consumption by 13.8 % to 117.11 Mtoe in 2015. Over
the same period, final energy consumption also decreased by 17.7 % to 80.46 Mtoe in 2015. These
levels are below the Spanish indicative energy efficiency 2020 targets of 122.6 Mtoe expressed in
primary energy consumption and 87.23 Mtoe in final energy consumption (updated indicative targets
communicated in the 2017 National Energy Efficiency Action Plan). However, the 2015 figures show
an increase in both primary and final energy consumption as compared to 2014 levels. Spain should
keep its commitment to the energy efficiency policies in order to make sure that demand remains
below both targets during the next years, when a GDP growth rate is expected.
(source: Eurostat)
Primary energy intensity decreased over the period 2005-2015 and remained below the EU average.
9
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Energy Union
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The energy consumption of Spain's transport sector was in 2015 at almost 42 % in total final energy
consumption, well above the EU average of 33.1 %. Nevertheless, final energy consumption in Spain's
transport fell by 20 % in Spain in 2014 compared to 2005 levels. The energy consumption of the
residential sector is below the EU average, with a share in total final energy consumption of 18.5 %.
On the contrary, the energy consumption of Spain's industrial sector was in 2015 at 23.5 % in total
final energy consumption, below the EU average. As to the services sector, it is aligned with the EU
average, with a share of 12.5 %.
2015 ES: Final energy
consumption
80,5 Mtoe
2015 EU28: Final energy
consumption
1084,0 Mtoe
0,7%
3,1%
other (non-specified)
agriculture/forestry/fishing
0,4%
waste
2,3%
agriculture/forestry/fishing
13,6%
services
12,5%
services
18,5%
residential
41,8%
transport
23,5%
industry
25,4%
residential
33,1%
transport
25,3%
industry
(source: Eurostat)
For the period 2014-2020, Spain allocated significant amounts of EU Cohesion policy funds for energy
efficiency, in particular for the residential sector. This is expected to result in improved efficiency,
therefore enabling many households to adequately warm their homes, reducing their risk of energy
poverty. The energy efficient renovation of the building stock will also help Spain to fulfil its energy
efficiency commitments for 2020.
Spain has invested through the National Fund for Energy Efficiency more than 300 million euros since
its establishment in 2014, and has recently approved a new framework of aids for projects in energy
efficiency carried out by the local entities, partially financed by structural European funds and with a
budget of 336 million euros in 2017. In addition, the Official Credit Institute (ICO) and the Institute
for Diversification and Energy Saving (IDAE) will launch a new financing scheme with a total budget of
100 million euros.
(source: Eurostat)
(source: Eurostat)
(source: Odyssee database)
10
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Energy Union
Spain
Between 2005 and 2015 in Spain, the final energy consumption in transport recorded an average
annual decrease of 1.6 %, well below the 0.4 % average annual increase of the GDP. The decrease of
final energy consumption in transport was mainly driven by the decrease of freight transport activity
affected by the economic context.
(source: Eurostat)
(source: Eurostat and DG MOVE pocketbook)
The share of collective passengers land transport into total passengers' transport increased slightly
between 2005 and 2015.
(source: Eurostat)
Spain has made significant efforts to improve the efficiency of the transport system, notably in the
Spanish railway sector, where investments have been aimed at creating a high performance network
interoperable with the rest of the European network (resulting in the improvement of travel times
and an increase in the average speed of 30 % in the last decade). Between 2012 and 2016, incentives
to the substitution of vehicles for more efficient ones have led to the substitution of 1,173,035
vehicles and to a total expense of EUR 1.115 billion. In this line, a program called PROMOVEA will be
launched during 2017, aimed at promoting electric and alternative fuelled vehicles, and the
deployment of electric charging points.
In terms of infrastructures and regulation, the 2017 Spanish National Plan of Reforms addresses
various initiatives to improve the competitiveness of the Spanish Transport sector. The Plan
11
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Energy Union
Spain
considers it essential to strengthen the Spanish logistics sector to boost the competitiveness of the
Spanish economy. Some notable actions to be developed include encouraging the freight rail
transport through the development of rail motorways between the main national and international
logistics nodes and the promotion of the TEN-T Atlantic and Mediterranean corridors and the
connection with the main Spanish ports. This will increase the competitiveness of the ports and
reduce rates and fees in ports as well as airports and air traffic services developing the National
Mobility Plan based on the principle of an integrated, citizen-oriented, sustainable and efficient
transport system, and elaborating a Digital Agenda for Infrastructures.
5. Decarbonisation of the economy
5.1. GHG emissions
For the year 2020, Spain has a greenhouse gas emissions target of -10 % in the non-ETS sectors
(compared with emissions in 2005). According to the latest national projections submitted to the
European Commission in 2017 and taking into account existing measures, emissions are projected to
decrease by 20 % by 2020 as compared with 2005. Therefore, Spain should reach its 2020
greenhouse gas emission reduction target with a 10 percentage points margin.
According to approximate data for 2016, emissions decreased by 16 % between 2005 and 2016
against an interim target of 6 %.
(source: EC and EEA)
According to 2016 EEA estimates, the GHG intensity of Spain's economy was below the EU average.
In 2016, emissions per capita in Spain were also below the EU average.
In 2015 in Spain, the largest sectors in terms of emissions were the energy and transport sectors (1/4
of the total GHG emissions respectively) followed by industry (21 %), agriculture and fishery (12%)
and residential and commercial sectors (8 %). In relative terms, the emissions from the transport,
industry and agriculture sectors were above the EU average.
12
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Energy Union
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(source: EC and EEA)
Preliminary accounts under the Kyoto Protocol for Spain show overall removals of -14.0 Mt CO
2
-eq.
as an annual average in the period 2013-2015. For comparison, the annual average of the EU-28
accounted for removals of -119.0 Mt CO
2
-eq. It should be noted that in this preliminary simulated
accounting exercise, removals from Forest Management did by far not exceed the accounting cap.
Removals by Afforestation are notably higher than emissions by Deforestation. Removals by Forest
Management are a notable secondary contributor. Cropland Management changes from a relevant
source to a minor sink. Overall, there is an increasing trend in removals mainly due to changes by
Cropland Management and increasing removals by Forest Management. While removals by
Afforestation declined they were counter-balanced by removals by Forest Management which nearly
doubled over the course of the three-year period. Notable is also the shift of Cropland Management
from a source to a sink, with emissions in 2013 and increasing removals in 2014 and 2015. Emissions
by Deforestation remained constant.
Note: Forest Management credits are capped and presented as yearly averages when the total Forest
Management credits of the considered period exceed the simulated cap over the same period.
(source: EC and EEA)
13
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Energy Union
Spain
CO
2
emissions in transport and alternative fuelled vehicles
The average CO
2
emissions of new cars in Spain were in 2016 below the EU average and substantially
decreased since 2005.
(source: European Environment Agency)
Over the last four years, the number of electric charging points in Spain has increased substantially,
from 891 units in 2013 to 3674 units in 2016.
(European Environment Agency)
(European Alternative Fuels Observatory)
National Policy Frameworks under Directive 2014/94/EU on alternative fuels infrastructure have to
establish targets, objectives and measures for the development of the market of alternative fuels in
the transport sector and the deployment of the relevant infrastructure. Spain has submitted its
National Policy Framework as requested under article 3 of the Directive 2014/94/EU.
A detailed assessment of the Spanish National Policy Framework in terms of its compliance with the
requirements of Directive 2014/94/EU on alternative fuels infrastructure, its contribution to
achievement of long-term energy and climate objectives of the Union and coherence of its targets
and objectives in terms of cross-border continuity has been published as part of the Communication
14
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Energy Union
Spain
on Alternative Fuels Action Plans
(COM(2017)652)
and the related staff working document
SWD(2017)365.
5.2. Adaptation to climate change
A National Adaptation Strategy, the PNACC, was adopted in 2006. Three working programmes have
been adopted so far, in 2006 (WP1), 2009 (WP2) and 2013 (WP3). The following sectors were
considered by the PNACC-WP3 to address adaptation actions during the period 2014-2020:
biodiversity, forestry, water, soils, agriculture, fishing and aquaculture, tourism, health,
finances/insurance, energy, industry, transport, urbanism and building, and finally hunting and inland
fishing. A report on the assessment of the implementation of the PNACC is published every three
years, the latest dating from 2014. Monitoring reports are structured according to the architecture of
the PNACC and form the basis to follow up the progress in the implementation of the Strategy.
5.3. Taxes on energy and transport and fossil fuel subsidies
The overall tax burden on energy and transport in Spain amounts to 1.78% of GDP in 2014, which is
among the lowest in the EU and 0.6 percentage points lower than the average. All three categories of
taxation were lower than that of the EU average; this was in particular the case for the tax burden of
the transport vehicles. With the exception of the taxes on electricity and heat, the other two
categories presented a decrease between 2007 and 2014. In terms of CO2-related taxation, the car
registration tax is based on CO2 emissions, while there is no direct CO2 component in the taxation of
energy products.
Energy & Transport related taxes as % GDP
Total transport and electricity taxes [%GDP]:
1,75
5
4
[% GDP]
1,78
2,28
2,37
3
2
1
0
2007
2014
2007
2014
ES
Heat & Electricity
Transport Vehicles
EU28
Transport Fuel
(Source: Eurostat)
15
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(source: OECD Inventory of Support Measures for Fossil Fuels 2015)
Spain mainly provides consumer support in the form of fuel-tax exemptions for specific users. The
chief source of support to fossil-fuel production in Spain has been the financial assistance to the
ou try’s hard-coal
mining industry according to the EU State Aid rules.
I May
6 a € .
illio state
aid scheme was approved aiming to alleviate the social and
economic impact of closing 26 uncompetitive coal mines in Spain. The phasing out of any State Aid by
2018 is required by the relevant EU state aid rules and the Council Decision 2010/787/EU which
requires that mines receiving such aid must be wound down by the end of 2018 at the latest
6
.
5.4
.
Renewable energy
With a renewable energy share of 16.2 % in 2015, Spain is on track to reach its 2020 renewable
energy target
.
However, there has been a visible slowdown in the increase of this share between
2014 and 2015 compared to the three precedent years
and
investments have slowed down due to
regulatory changes.
(source: Eurostat-SHARES)
6
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The share of renewable energy sources per sector in 2015 was the following: 36.9 % in electricity,
16.8% in heating and cooling, and 1.7% in transport. Spain is well below the 2020 target of 10 % of
renewables in the transport sector. One of the reasons is that Spain only started to apply the
sustainability criteria for biofuels in 2016.
(source: Eurostat-SHARES)
Some measures to further promote renewables should counteract the slowdown in the increase of
the share of renewable energy. The tenders organised in 2016 and 2017 for allocating support to
renewable electricity projects are seen as a step forward to fostering investment in renewables and
meeting the 2020 target. The government has also started to apply biofuels sustainability criteria in
2016, which will make it possible to count biofuels towards the renewable energy targets.
Without the deployment of renewables since 2005, it is estimated that Spain would have consumed
in 2014 about 11.5% more fossil fuels (for their gross inland consumption) and that GHG emissions
would have been 9.8% higher
7
.
(source: EEA)
5.5. Contribution of the Energy Union to better air quality
7
Avoided GHG emissions mentioned here have a theoretical character as these contributions do not
necessarily represent 'net GHG savings per se' nor are they based on life-cycle assessment or full carbon
accounting.
17
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Air quality in Spain continues to give cause for concern. For the year 2013, the European
Environment Agency estimated that about 23,940 premature deaths were attributable to fine
particulate matter (PM
2,5
) concentrations and over 4,280 to nitrogen dioxide (NO
2
) concentrations
8
.
For both pollutants Spain reported exceedances of the binding EU air quality standards
9
in a number
of air quality zones. For the year 2015, Spain reported exceedances of the limit value for PM
10
in 8
out of the 130 air quality zones in Spain, while exceedances of the limit value for PM
2.5
were reported
in 1 zone and of the limit value for NO
2
in 8 out of 127 zones.
ES
140
120
Air quality zones in exceedance of EU air quality standards
[number of zones]
100
80
60
40
20
0
NO2 Annual limit value PM2.5 Annual limit value PM10 Daily limit value
number of zones exceeding
number of zones not exceeding
(source: EEA)
The health-related external costs from air pollution in Spain have been estimated to be more than
EUR 22 billion/year (income adjusted, 2010), which includes the intrinsic value of living a healthy life
without premature death as well as the direct costs to the economy such as healthcare costs and lost
working days due to sickness caused by air pollution
10
.
The Energy Union can substantially contribute to addressing these air quality problems through
measures reducing emissions of both GHG and air pollutants such as PM and nitrogen oxides (NO
x
)
from major contributing sectors such as (road) transport, energy production, industry and residential
heating (e.g. stoves and boilers).
European Environment Agency, 2016,
Air Quality in Europe
2016 Report,
table 10.2. The report also includes details as
regards the underpinning methodology for calculating premature deaths.
9
Directive 2008/50/EC of the European Parliament and of the Council of 21 May 2008 on ambient air quality and cleaner air
for Europe, OJ L 152, 11.6.2008, p.1-44
10
See also the EU Environmental Implementation Review Country Report for Spain, SWD(2017)42 final of 3.2.2017
8
18
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Spain
ES
Agriculture
PM2.5 emissions by sectors - 2015*
4,1%
45,3%
4,0%
6,8%
1,7%
1,1%
0,0%
NOx emisisons by sectors - 2015*
9,2%
12,2%
17,1%
15,8%
0,6%
7,1%
0,0%
Commercial, institutional and households
Energy production and distribution
Energy use in industry
Industrial processes and product use
Non-road transport
Other
Road transport
9,8%
27,2%
4,3%
33,6%
Waste
*NECD data submitted by MS to EEA at 28th May 2015
(Source: EEA. This table reflects only sources of primary PM
2,5
emissions.)
6. Research, innovation and competitiveness
6.1.
Research and innovation policy
Achieving a safe, clean and efficient energy system is identified amongst the priorities of Spanish
research and innovation (R&I) strategy. The Spanish Strategy for Science and Technology and
Innovation 2013-2020 and the State Plan of Scientific and Technical Research and Innovation
implementing the Strategy are the main policy frameworks for energy-related research, development
and demonstration (RD&D).
The Spanish energy R&I activities are shaped by four objectives: (a) Sustainability and reduction of
greenhouse gas emissions to mitigate climate change; (b) Economic competitiveness to improve the
efficiency of the Spanish and European grids through the development of the internal energy market;
(c) Security of supply, in order to better coordinate national energy supply and demand in an
international context; and (d) Social and technological changes fostering lower energy consumption
patterns.
Spain is a very active contributor to the ongoing work of the Strategic Energy Technologies (SET) Plan.
It participates in all the temporary working groups for the implementation of the integrated SET Plan
except one, and leads the one dedicated to concentrated solar power. Spain has also made a point to
link and coordinate the actions that derive from the State Plan for Scientific and Technical Research
and Innovation 2013-2016 with European initiatives, and especially with the SET Plan.
Regarding the Horizon 2020 programme, Spain has received so far 12.6% of the EU contribution
devoted to the 'secure, clean and efficient energy' part of the programme. As of September 2017,
554 participations from Spanish organisations have been awarded EUR 228 million in Horizon 2020
energy projects.
6.2. Investments and patents in the Energy Union R&I priorities
In 2015, public (national) investments in the Energy Union R&I priorities reached EUR 106 million,
having increased by 10% compared to 2014. The largest share of investments (41%) was attracted by
the Renewables priority of the Energy Union, followed by the Smart System priority (26%) and
Sustainable Transport (15%). In the period 2007-2015, the maximum public investment was EUR 275
19
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Energy Union
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million, reported in 2011. In 2014, the most recent year for which data from most Member States are
available, public investment per GDP in Spain was lower than the EU average
11
.
Private investment in the Energy Union R&I priorities in 2013 was estimated at EUR 456 million (3%
of the private R&I investment in Energy Union R&I priorities in the EU). The focus was on
Renewables, which received 50% of these investments, followed by Efficient System with 20% and
Sustainable Transport with 15%.
In 2013, the most recent year for which complete patent
12
statistics are available, 132 companies and
research organisations based in Spain filed 216 patents in low-carbon energy technologies (3% of the
EU total). The focus was on Renewables (52%), followed by Efficient Systems (19%) and Sustainable
Transport (14%).
In 2013, private R&I investments and patents in Energy Union R&I priorities were lower than the EU
average when normalised by GDP and by population respectively. In the period 2007-2013, both
private R&I investments and the number of patents in Energy Union R&I priorities increased on
average by 6% and 13% per year, which is comparable to the evolution of the same indicators at EU
level (6% and 15% respectively).
Note: The international comparison (right) is shown for 2014 (Spain had reported EUR 96 million). Reporting at
EU level for 2015 is not as complete, and very few countries have reported for 2016.
11
In previous years there had been a significant reduction in public R&I investment, as a result of budgetary
restrictions in the context of the Excessive Deficit Procedure.
In the context of this document, the term 'patent' refers to patent families, rather than applications, as a measure of
innovative activity. Patent families include all documents relevant to a distinct invention (e.g. applications to multiple
authorities), thus preventing multiple counting. A fraction of the family is allocated to each applicant and relevant
technology.
12
20
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Energy Union
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(Data sources: Public investment as available in the International Energy Agency RD&D Statistics database
13
for
codes relevant to Energy Union RIC priorities. Patent data based on the European Patent Office PATSTAT
database
14
. Private investment as estimated by JRC SETIS. Detailed methodology available from the JRC
15
.)
6.3. Competitiveness
In 2014, the real unit energy costs (RUEC)
16
in Spain (20.8) were above those at the EU average
(15.3), almost three times more than those in the US but below those in Japan and China.
Electricity
prices paid by industrial customers are aligned with the EU average. Gas prices for industrial
consumers are aligned with the EU and OECD averages.
(source: ECFIN)
(source: ESTAT and IEA)
Regarding the competitiveness in wind and solar energy, Spain is performing quite well in the wind
sector due to a comparative advantage in key components of wind turbines such as blades,
gearboxes and generators. As indicated by the revealed comparative advantage indicator
17
below,
13
14
http://www.iea.org/statistics/RDDonlinedataservice/
https://www.epo.org/searching-for-patents/business/patstat.html#tab1
15
https://setis.ec.europa.eu/related-jrc-activities/jrc-setis-reports/monitoring-ri-low-carbon-energy-technologies
16
17
w is the reference group, the World economy. 2005 refers in the text to the indicator average over the 2000-2009 period,
while 2015 represents the average over the 2010-2016 period. The same applies for the RTB indicator - see below.
The RCA index for product "i" is defined as follows:
RCA
i
=
This indicator measures the amount of money spent on energy sources needed to obtain one unit of value
added.
∑ Xw,
X,
∑ X,
Xw,
where
X
is the value of exports, and j is the country and
21
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Energy Union
Spain
the Spanish economy is not specialised in solar PV. The relative trade balance
18
confirms that Spain is
a net exporter of wind components, well above the EU average in 2015. In particular, Spain recorded
a significant increase in the relative trade balance of wind technology components between the
period 2005 and 2015, by turning the relative marginal trade deficit into a trade surplus. Spain is a
net importer of solar PV panels and components.
Revealed Comparative Advantage -
RCA
absolute change 2005 - 2015:
-0,14
6
5
0,5
Relative Trade Balance - RTB
absolute change 2005 - 2015:
2,21
-0,07
0,22
1,0
0,07
0,69
-0,08
0,06
[-]
3
2
[-]
0,0
-0,5
4
1
0
-1,0
solar
wind
ES
solar
wind
solar
wind
ES
solar
wind
EU28
EU28
2005
2015
2005
2015
(source: UN comtrade)
7. Regional and local cooperation
Spain actively participates in various regional cooperation groups, with a key focus on increasing the
interconnection with France for both electricity and gas:
o
Regional High level Group South West, implementing the Madrid declaration, together
with the European Commissioner in charge climate action and energy and the Ministers
of France, and Portugal responsible for energy policy.
TEN-E regional groups: North-South interconnection in Western Europe, both for gas and
electricity.
o
Furthermore, Spain and Portugal are part of the electricity market coupling of regions since May
2014. This coupling now spans 19 countries, covering almost 85 % of European power consumption.
Lastly, Spain has shown interest to participate in the Clean Energy for EU islands initiative. The
Commission announced the initiative on islands as part of the enabling actions of the Clean Energy
Package. The initiative aims to accelerate the clean energy transition on islands to ensure islands
provide secure and clean energy and energy related transport to their citizens and do so for
affordable costs. In this respect, it is envisaged to bring forward an enabling framework which will
facilitate deployment of investments on energy. A starting point is the signing of a political
The RTB indicator for product "i" is defined as follows:
RTB
i
=
X +M
where
X
i
is the value of product's "i" exports and
M
i
imports.
X −M
18
22
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Energy Union
Spain
declaration with interested Member States and the Commission in the margins of the Informal
Energy Council scheduled for May 18 in Valetta (Malta).
European Territorial Cooperation
'Interreg'
under EU cohesion policy also provides further
opportunities for cross-border, transnational and interregional cooperation, including in the Energy
Union areas.
Cities and urban areas have a key role in the energy and climate challenge. The Urban Agenda for the
EU, established by the Pact of Amsterdam in May 2016, better involves cities in the design and
implementation of policies, including those related to the Energy Union. It is implemented through
partnerships, in which the Commission, Member States, cities and stakeholders work together on a
number of important areas, including on Energy Transition, Urban Mobility, Air Quality, Climate
Adaptation and Housing. Spain is participating in the partnerships on Energy Transition, with the city
of Navarra regional housing agency Nasuvinsa as a member and on Climate Adaptation with the
Province of Barcelona as a member.
By 2016, in the context of the Covenant of Mayors, the sustainable energy action plans delivered by
1376 Spanish municipalities had been assessed. Overall, these municipalities cover almost 25.5
million inhabitants. These municipalities committed to reducing GHG emissions by 22.7% by 2020 (as
compared to 1990 baseline), a lower percentage reduction than at EU level, but leading to higher
emissions per capita.
(source: JRC 2016. Notes: SEAP=sustainable energy action plan, GHG=greenhouse gas emissions)
In Spain, by September 2016, 164 cities (covering 8.76 million inhabitants) have committed to
conduct vulnerability and risk assessment and develop and implement adaptation plans in the
framework of the Covenant of Mayors for Climate and Energy.
8. Cohesion policy and EU clean energy investments
EU cohesion policy makes a key contribution to delivering the Energy Union objectives on the
ground, including important investment possibilities to implement energy policy objectives in Spain
which are complemented by national public and private co-financing, aiming at optimal leverage. It
also ensures integrated territorial solutions to energy and climate challenges, supports capacity
building and provides technical assistance.
Over 2014-2020, cohesion policy is investing some EUR 1,981 million in energy efficiency
improvements in public and residential buildings and in enterprises, as well as in renewable energy
and smart energy infrastructure in Spain. Cohesion policy is also investing significantly in R&I and in
SME competitiveness, based on the national and the regional strategies for smart specialisation. For
Spain, the strategies (both the national and several regional ones) include a focus on safe,
sustainable and clean energy and smart, integrated and sustainable transport, as well as actions
23
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Energy Union
Spain
against climate change consequences and for resource efficiency. At this stage, at least EUR 8 million
is foreseen for investments in R&I and adoption of low-carbon technologies in Spain, but this might
increase further in line with the evolving content of the smart specialisation strategy. A further
estimated EUR 2 400 million is invested in supporting the move towards an energy-efficient,
decarbonised transport sector.
ES
ERDF and Cohesion Funds allocation on energy,
low-carbon transport and low-carbon R&I
2014-2020
Total alocation [mn EUR]
1.988
3.000
2.500
2.400
[Million EUR]
2.000
1.500
1.000
500
0
Energy and Low-carbon R&I
Low-carbon transport
(source: DG REGIO)
These investments are expected to contribute to around 85,000 households with improved energy
consumption classification, a decrease of around 1,629,176,000 kWh per year of primary energy
consumption of public buildings, around 1,050 MW of additional capacity of renewable energy
production and 621,000 additional users connected to smart grids, as well as to around 1,000 km of
new railway lines, 2,360 km of reconstructed or upgraded railway lines and 15 km of new or
improved tram and metro lines. Overall, the EU cohesion policy investments in Spain over 2014-2020
are expected to contribute to an estimated annual decrease of GHG emissions of around 6,580,000
tonnes of CO2eq.
For example, the Hospital de Sant Pau Art nouveau World Heritage Site in Barcelona has been
sustainably restored into a cultural tourist attraction and Knowledge Centre. A strict adherence to
sustainable building materials and techniques were applied to the restoration process. The project
was able to attain a considerable amount of energy reduction and maximisation of water resources
during the renovation. A geothermal system uses radiant floor heating, and sensors heat and cool
the buildings based on demand. Three of the restored buildings achieved LEED silver certification
(one of the most widely used green rating system). The total cost was EUR 78 million, of which the
European Regional Development Fund (ERDF) contributed with EUR 22.5 million.
As another example, the National Renewable Energy Centre (CENER) is a technology centre,
specialised in applied research and in the development and promotion of renewable energies. It has
excellent qualifications and recognised national and international prestige. The CENER-CIEMAT
Foundation started its activity in 2002 and its Board of Trustees is comprised of the Ministry of
Economy, Industry and Competitiveness, CIEMAT (Research Centre for Energy, Environment and
Technology), the Ministry of Energy Tourism and Digital Agenda, and the Government of Navarra. It
currently provides services and performs research work in six areas: Wind, Solar Thermal and Solar
Photovoltaic, Biomass, Energy in Buildings and Renewable Energy Grid Integration. CENER has
cutting-edge technological infrastructures, with modern laboratories and facilities. The research and
development of an offshore wind power generation system for deep water has been co-funded by
the European Regional Development Fund (ERDF). The main objective is to generate knowledge and
develop technology in order to extend and lead the construction of offshore wind farms in deep
24
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Energy Union
Spain
water. The project has a budget of EUR 3,910,276 and was partially funded by the former Spanish
Ministry of Science and Innovation and co-funded with ERDF funds within the INNPACTO 2010
program. CENER activities are focused on the experimental and numerical characterization of wind
conditions for wind resource assessment and wind farm design. To this end, mesoscale
meteorological and computational fluid dynamic (CFD) models will be validated in offshore
conditions. Besides, a design tool will be developed for the optimization of the wind farm layout in
deep water.
Through its support to sustainable transport systems, the Connecting Europe Facility (CEF) also
contributes to the goals of the Energy Union. Following Spanish participation in the CEF
Transport
2014-2015 Calls, the Spanish action portfolio comprises 60 signed grant agreements, allocating EUR
900 million of actual CEF Transport Funding to Spanish beneficiaries (state-of-play February 2017)
19
.
The transport mode which receives the highest share of funding is rail (78.5 % of actual funding).
Some of the main rail actions under this portfolio aim at removing important bottlenecks and
completing missing links along pre-identified sections of the Atlantic and Mediterranean corridors.
Spai ’s ai
ulti odal a
tions aim at improving rail to road connections in the Atlantic and
Mediterranean corridors in order to improve the environmental performance of the network, in
addition to removing bottlenecks. The multimodal portfolio also includes important innovation
projects addressing the decarbonisation agenda, including actions promoting the use of LNG as fuel
for medium to long haul road transport as well as in maritime transport.
Spain demonstrates a consistent involvement in maritime transportation projects. The country's
efforts focus on improving the environmental performance of this mode of transport via expanding
the use of alternative fuels. This is particularly noted under Innovation projects, where Spain
continues its efforts for the introduction of LNG as marine fuel and the provision of shore side
electricity in the ports of Canary Islands. Moreover there is noteworthy activity in upgrading the
operational capacity of key Spanish ports, thereby contributing to the better integration of the
maritime transport in the logistics chain.
20
19
20
Note that European Economic Interest Groups and International Organisations are excluded from the analysis.
Source: INEA
25