Industrial electricity prices in Spain: A discussion in the context of the European internal energy market. (January 2021)

• Record Type: Journal Article
• Authors: Serrano González, Javier; Álvarez Alonso, César
• Is Part Of: Energy policy. Volume 148:Part A(2021)
• Publication Date: 2021-01
• Subjects: Energy competitiveness -- Electricity prices -- Electro-intensive industries -- Internal energy market; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2020.111930
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: This paper analyses the current state of electricity prices for large industrial consumers in Spain and compares the regulatory framework with other main industrial countries in Europe. The cost of electrical energy is a key factor in a country's industrial competitiveness. In a regulatory context shaped by the new European regulation of the internal electricity market in Europe, it would be expected that electricity prices in the Member States will converge in the long term, reaching similar values throughout the European Union. However, the limited electricity interconnection capacity in the case of some countries, such as Spain, means that electricity market prices are higher than in many Member States. This means that electricity-consuming industries face problems of competitiveness due to their higher energy bill costs. This paper focuses on the current situation for large industrial consumers in Spain, studying the main causes of the differences with other European countries, as well as analysing the various support mechanisms that have been implemented at both the national and European levels. This study also discusses the future prospects and possible solutions and recommendations for energy policy to promote the competitiveness of large industry in Spain within the context of a single European market. Highlights: Electricity prices for large industrial consumers in Spain are analysed. Regulatory issues for electro-intensive consumers are compared for selected EU MSs. The outlook in Spain for large industry is positive due to renewables cost cuts. Wide divergence in both energy bill and regulatory measures in EU-MSs is identified. The need for uniform support measures within the EU Energy Market is identified.