Spain: CNMC warns of possible rise in energy prices due to nuclear and coal closures

María Fernández, vice president of Spain’s National Commission of Markets and Competition (CNMC), has urged the new central government to reflect on the strategy and measures to be adopted in relation to nuclear energy and coal and its potential impact on the energy market .

The regulator’s vice president also raised the need to plan “in an orderly manner” for the incorporation of renewable energy into the system, which will cause, on the one hand, a challenge in terms of distribution networks and, on the other, in terms of pricing.

On the other hand, “experts warn that a possible massive influx of energy from renewable sources in the electric pool could have a cannibalization effect and lower prices that would not make the investments profitable,” said Ms. Fernández. Commenting along these lines, the president of the Valencian Association of Energy Sector Companies (Avaesen), Marcos Lacruz, criticized government over having energy policies and the promotion of renewable energies in Spain”left until the last minute, when we all knew where this road was headed, and the goals defined by Europe … “.

“The energy sector is one of the most difficult to regulate and the objectives set by Europe in terms of renewable energy contribution – 32% in 2030 -, increases in energy efficiency and emission reductions are ambitious. we are in a moment of sustainability in the economic and financial sectors, in a good position to act for the future, but, if this process is not carried out with care, we run the risk of suffering important consequences.” said Fernandez.

Full Content: El Economista

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