“Maximize the use of gas infrastructure, to establish a level playing field among all the energies operating in the market and make decisions that enhance the competitiveness of Spanish industry” are the objectives that should be achieved, according to Antoni Peris, president of the Spanish Gas Association, Sedigas, in order that gas remains a job creation and wealth.engine. Peris made these statements yesterday during the press conference of the Spanish gas sector Annual Meeting presentation.
According to Peris, gas is not only a clean energy source, abundant and competitive, but it also will help the implementation of renewable energy in Europe, as well as contribute to achieving the energy efficiency and emissions reduction objectives.
5 key points:
1 – Development of a stable regulatory framework to establish free market conditions. Peris says that “all energies should reflect their costs in the final price.” He also calls for designing a transitional process to remove the “tariff of last resort”, except in the group of vulnerable customers, in which the price is calculated using the gas auction.
2 – To promote the penetration of gas in the residential and tertiary sector.
Although penetration in the domestic sector reaches only 27%, there are highly efficient technologies such as microgeneration and gas driven heat pumps, which should be enhanced through their inclusion in the Technical Building Code (CTE) and the Regulation of Thermal Installations in Buildings (RITE). The air conditionning through cogeneration saves costs from the first year in primary energy and emissions. Giving a boost to this technology would contribute to achieving the 20-20-20 objectives as well as revive the equipment industry.
An increase in gas consumption points can generate a substantial improvement in employment: to the current 60,000 direct jobs generated by the gas industry, approximately 120,000 indirect jobs could be added by installation companies participating in the expansion.
3 – Gas as a substitute for other fuels in the industrial sector.
Direct use of gas or through cogeneration, improves the competitiveness of enterprises, since the cogeneration enables to produce electricity at prices far below, an element that has a direct impact on industrial competitiveness.
4 – To promote the penetration of gas in the land and sea transport sector.
The gas vehicle provides complementarity to electric car, covering market segments, such as captive fleets in cities, where gas presents highly developed solutions.
5 – Development of a “Iberian Gas Corridor”
The gas industry believes that the “privileged” geopolitical situation of Spain will allow the creation of the South of Europe Hub, which channels gas transit to other EU countries. However, to make this happen, a political boost is necessary as well as a major coordination exercise with adjacent Member States, so that the Midcat can become a reality.
The new project Midcat, which is a marginal investment for Spain, since the main transport routes are developed, could report incomes to the system in excess of 100 million Euros.
For 2015 the transit capacity between Spain and France is planned to be over 7.5 bcm in south-north direction. In order to make the most of this potential, tolls need to be adjusted to the requirements of European regulations, while facilitating the transit of gas through Spain to other European countries taking advantage of the diversification of LNG sources (13 sources) and deposits of northern Africa. A coherent redesign of tolls, would avoid en excessive gas price increase, when crossing the border, while boosting the product competitiveness.
The gas sector, generates 18,000 million euros income, between its core business and its gas processing activities, with a gross value added of between 7,000 and 8,500 million euros between these two activities. With an investment capacity of over 1,000 million euros per year, it has accumulated more than 13,000 million euros in investment since 2000. These results have been attained in just over 40 years of the gas history in Spain.