Last March 28 a non- legislative proposal on the promotion of industrial competitiveness and cogeneration was approved unanimously by the Parliament. But the concern is now that this proposition becomes a law, and cogeneration can continue its way to meeting the objectives set. From associations and stakeholders in the sector, this fact is taken with optimism, although alert and expectation remains.
We reproduce below the views of Roger Mark, CEO of Cogen Spain, Antonio Moreno, EP Commercial Manager of Finanzauto, and Jose Luis Melgarejo, General Manager of Cummins Energy Solutions Business Iberia.
In order to eliminate the tariff deficit that affects the electrical system, the Government published last January by Royal Decree Law 1/2012 establishing a moratorium on economic incentives for all of the special regime technologies (including cogeneration). In the preamble to Royal Decree there is no specific mention to the cogeneration tariff as the deficit reason, only some of the renewables are cited as motivating it. These renewable technologies have exceeded their respective installed power objectives, while cogeneration has reached 30% less of its target.
Cogeneration not only creates efficiencies for the system, but employment and industrial competitiveness also increase, lowering the energy costs for companies that require thermal energy for their production processes. COGEN Spain has been calling repeatedly for the need of an urgent specific regulation and regulatory framework for cogeneration. Cogeneration has helped the industrial development, the employment generation, and the increase of national competitiveness and its industrial development over the past 30 years. In this sense, COGEN Spain believes an economic regime supporting the development of cogeneration must continue to exist.
For all these reasons, COGEN Spain warmly welcomes the CiU non-legislative proposal concerning the need of a boost to industrial competitiveness based on efficiency and energy savings, with special attention to cogeneration. This proposal, unanimously approved by all political groups in Parliament on March 28, should be a turning point in the current state of suspension of economic incentives for the development of cogeneration.
Cogeneration , as a technology linked to the territory, does not know about relocation. Its support role to the competitiveness of certain industries, the security it offers for high efficiency supply in basic buildings such as hospitals, and the primary energy savings it produces in any facility with high thermal demand, make the high-efficiency cogeneration a technolotgy that is current and mature, and has a high development potential and a great journey ahead. Europe understands this, and we are convinced that Spain also will. The non-legislatve proposal passed by Congress a few weeks ago ratified this, and a new legislation that regulates it is now pending. Roger Mark
Finanzauto S. A., had made a clear commitment to energy efficiency market in which it was already focused with special dedication, given the strategic market and the important GAP existing in the installed capacity targets previously accepted by the Administration. Similarly, the major impact of repowering gained significance, in ensuring continuity in primary energy savings, by upgrading technologies and equipment to increase efficiency. Royal Decree Law 1/2012, was a major setback for both Finanzauto SA and for many
customers who trusted us, and who saw their hopes paralyzed by not having their projects included to date in the register of pre-allocation.
Finanzauto SA has followed the directions of Cogen association, of which it is member, and invited its customers with current plants to send letters to the different institutions involved to the object of being allowed to complete their projects launched under the economic framework of the RD 661/2007.
From Finanzauto S.A., and especially under the current economic conditions being experienced by the country, we would like;
1o Differentiated recognition of energy efficiency against renewables
2 o Impulse of all the institutions involved to implement a STABLE legal framework and a promotional campaign of that stability in the future.
3 o Solution to all plants and investments in progress which have been fatally affected by DR 1/2012.
4 ° Attractive profitability for energy efficiency projects, allowing us to face the differential GAP which year after year is postponed.
5 ° To maintain the incentives for technological renovation of existing plants, as long as it ensures the technological updating.
Cummins Energy Solutions Business Iberia.
The entire industry has welcomed with great joy the support received by the Committee of Industry, Energy and Tourism of the House of Representatives. To see a proposal that was unanimously voted by the whole political spectrum, progress, always conveys an important support to the development of an activity, now more than ever.
With new technologies, YouTube, Internet, …. we witnessed one of the few occasions when our politicians debated about cogeneration. ¿Coge-what? It seems that only now is there an understanding of the key role of cogeneration in helping the competitiveness of our industry and its great contribution to the maintenance and competitiveness of important industries, in addition to more than push back a secure relocation should this technology had not been present.
One of our greatest problems has always been the lack of public disclosure of a technology that roughly generates 10% of the energy in our country. It is the great unknown, unfairly included within renewables. I hope that we will be able to make an opportunity out of the challenge of RD1/2012, that we will get a specific law and are equitably valued. Our industry needs it, and needs to get there fast … The industry has spent 10 years holding breath and we are running out of oxygen. The more we wait, the less industries will there be where to implement energy efficiency and coge-what which will be again, something happening in the surrounding countries.