How is Spain facing the energy crisis in 2023?

In 2022, the energy markets suffered a major blow due to the war in Ukraine. Most European countries suffered a very high energy deficit. In the battle against the energy crisis, Spain remained quite active, as it had been implementing different measures to improve its energy consumption, which in 2023 allowed it to avoid a major blow. Do you want to know how Spain is facing the energy crisis in 2023? Stay until the end!

How did the crisis change the global energy landscape?

The European Union, as a method of combating the energy crisis, is approaching major gas suppliers such as Norway, Algeria and the United States. As well as liquefied natural gas producers in Africa and the Middle East, thus displacing Russia as one of its gas suppliers.

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How were the policies to deal with the energy crisis in 2022 approached?

The year 2022 was the year of most progress in the technical work for updating the PNIEC, where the 2021-2030 decarbonization objectives were established as a measure against the energy crisis in Spain.

Likewise, in 2022, the foundations were laid for what is known as deliberative democracy.  Because in this season, the proposals for a safer and fairer Spain in the face of climate change were presented and approved before the government by the Citizens’ Climate Assembly.

In addition, the draft Royal Decree creating the committee of experts on climate change and energy transition to evaluate Spain’s climate action and propose climate policy measures was also presented. 

This made it possible to demonstrate that Spain was prepared to face the energy crisis thanks to its regasification plants, its electricity grid and the growing incursion into renewable energies. Thus, it managed to mitigate the increase in the price of gas, electricity and fuel with regulatory and innovative measures such as the Iberian exception.

What are the expectations and challenges for 2023 with respect to the energy crisis in Spain?

One of Spain’s priorities with respect to the energy crisis is to promote the Green Agenda. The latter includes the “Fit for 55” package, as well as taking into account biodiversity and sustainable mobility. 

So much so that the Spanish government will focus this year on offering opportunities to Latin American and Southern countries. It will apply to all those that offer a technical cooperation initiative in terms of climate change, meteorology and water.

Examples of this type of project are the Ibero-American Network of Climate Change Offices (RIOCC), the Conference of Directors of Ibero-American Meteorological and Hydrological Services (Cimhet) and the Conference of Ibero-American Water Directors (Codia).

How does Spain handle the energy crisis in 2023?

The January 2023 monitoring report on the energy crisis in Spain shows that the country continues to be in good shape in terms of savings and security of supply indicators. At the same time, it continues to adopt new measures to reform security of supply and accelerate the energy transition to renewable energies.

While the European Union maintains the pre-alert status, the Spanish government has made efforts to reduce the national demand for natural gas. As a result, from August 1, 2022 to March 31, 2023, demand has been reduced by 15% compared to the measures for the same period in the last 5 years.

In addition, Spain has the available volume of storage at the subway level and in the form of LNG, enough to cover 40 days of historical consumption in the last days of winter. A sample that can be verified with the price of natural gas and electricity for the month of January.

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What is the current condition of the energy crisis in Spain?

If we talk about the energy crisis in Spain, it can be said that the National accumulated demand for natural gas from August 1, 2022 to January 31, 2023 has decreased.

The amounts range from -22% (excluding electricity exports) and -24% (considering the variation of flow balances) compared to the average of the last 5 years in the same period.

In the case of electricity demand at the national level, in the period from August 1, 2022 to January 31, 2023, it has decreased by 7.5% with respect to the average consumption of the last 5 years.

What are the benefits to consumers of the energy crisis?

In 2023, consumers will still be able to benefit from the energy crisis in Spain, as the measures established throughout 2022 will be maintained as a means to cope with the increase in energy prices caused by the war in Ukraine.

The ideal of these measures is to protect people with energy vulnerability, so that they are guaranteed access to electricity, water and gas. Some of these measures are: 

What will the inclusion of renewable energies look like?

This 2023 Spain has boosted its switch to renewables as global oil and gas prices became an incentive for businesses and households to implement green energy.

At the beginning of the year, there was a 38% growth in the consumption of renewable energies, a considerable growth compared to the previous year. A sign of the progress of the energy transition to 74% renewable by 2030 set in the National Energy and Climate Plan 2021-2030. 

In addition, there is promotion by the government to encourage people to install solar panels and heat pumps to lower the cost of energy bills more and more.

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To learn more about the energy crisis in Spain, I invite you to contact us through our email tasconsultoria@tas-sl.es. We have an excellent team of professionals who can provide you with more information on this topic. So do not wait any longer, contact us and ask for your free advice.