Spanish power utilities warn of a saturated electricity grid

Aelec, the Spanish energy utilities lobby, warned on Tuesday that most of Spain's electricity grid was saturated and needed massive investment to allow for new connections.

Aelec analysed the global map of Spanish grid operators. It concluded that over 80% of nodes in the grid could not handle an increase in electricity generated, leading to increased instability and decreased efficiency. Redeia is the main operator and coordinator of the country's grid.

Aelec says that to avoid bottlenecks it is necessary to increase investments, improve returns on investments, and plan carefully.

Aelec released a statement that said, "Without these requirements, it won't be possible to connect industrial, housing, storage or electric mobility. This will waste the potential of renewable energies and limit the economic growth and competition that electrification could bring to Spain."

The massive blackout in Spain and Portugal that occurred on April 28, has reignited the debate on the need for investment and return on investments to the power network of the countries.

The Spanish authorities regulate grid investments and limit the return on these investments. These investments are ultimately paid by consumers.

The anti-trust regulator CNMC raised the return on investment to 6.46%, from the current 5.58%. However, utilities are demanding a return of 7.5 percent. (Reporting and editing by Inti landauro)

(source: Reuters)