Analysis of the Energy Sector in Spain and future …

1 Analysis of the Energy Sector in Spain and future perspectives Special focus in the Power and Natural Gas sectors Author: Dani Mora Romera Tutor: Jean- Pierre Fran ois Grande cole 2014- 2016 Finance Major Analysis of the Energy Sector in Spain and future perspectives 2 Dani Mora Romera 3 Index 1. Introduction .. 7 2. Body .. 9 International situation and perspectives .. 9 The 3 main drivers of the present decade .. 9 World Energy Outlook 2014.

2 10 Demand and production of Energy .. 14 Oil .. 14 Natural gas .. 19 Coal .. 24 Nuclear power .. 26 Hydroelectricity .. 27 Other renewable .. 28 Energy intensity .. 29 Energy in Spain .. 30 Power Sector .. 34 Regulatory framework and market design .. 34 Access tolls .. 35 Market design .. 36 Basics about the electricity market in Spain .. 37 The wholesale market: MIBEL .. 37 The retail market .. 39 Agents in the electricity market in Spain .. 40 Electricity demand in Spain .

3 42 Electricity offer in Spain .. 44 Market production evolution .. 46 Spanish competitiveness .. 47 Natural gas Sector .. 50 Regulatory framework and market design .. 50 Last resource tariff .. 50 Access tolls to third parties .. 51 Remuneration in the gas system regulated activities .. 51 Remuneration in regasification activities .. 52 Remuneration in underground storage activities .. 52 Analysis of the Energy Sector in Spain and future perspectives 4 Remuneration for transport facilities established before January 1st 2008.

4 52 Remuneration for transport facilities established after January 1st 2008 .. 53 Remuneration of distribution activities .. 53 Agents in the Natural Gas market in Spain .. 53 Transport companies .. 53 Distribution companies .. 54 Marketers .. 55 Technical manager of the system .. 57 Natural Gas demand in Spain .. 57 Natural Gas offer in Spain .. 57 Origin of the resources .. 57 A big change in the market: Shale gas .. 58 Internal production .. 59 Price evolution.

5 59 Coal Sector .. 61 Overview .. 61 Demand .. 61 Revenues and value of the production .. 62 Labour .. 63 External commerce .. 63 Oil Sector .. 65 Demand .. 65 Offer .. 66 Oil imports .. 66 Agents .. 66 Wholesale marketers of oil products .. 66 Retail distributors of oil products .. 66 Wholesale Liquefied Petroleum Gas operators .. 67 Retail Liquefied Petroleum Gas operators .. 67 LPG prices .. 67 Nuclear Sector .. 69 New security tests since the collapse of Fukushima plant.

6 69 3. Energy efficiency .. 71 Energy efficiency Analysis by Sector .. 71 Dani Mora Romera 5 Industrial Sector .. 72 Transport Sector .. 73 Domestic Sector .. 74 Service Sector .. 74 4. Impact of the Energy prices for small and medium size companies in Spain .. 75 Overview .. 75 The Energy problem for small and medium size companies in Spain .. 76 Opportunities coming from a better Energy framework for PYMES .. 78 5. Energy intensive industrial sectors Analysis .. 80 Overview.

7 80 Methodology .. 80 Results Analysis .. 81 Spanish industry .. 81 Energy intensive industries .. 82 People employed .. 82 Turnover .. 82 Total revenues .. 83 Total costs .. 83 Conclusions .. 83 6. future of the Spanish Energy Sector .. 84 Main drivers in the last 7 years .. 84 Road to the new energetic model .. 84 Network and demand management .. 85 Fossil fuel technologies .. 85 Renewable energies .. 86 Smart cities .. 86 What to do in order to develop the Energy Sector in Spain for the near future .

8 86 Regulative actions .. 87 Industrial fabric development actions .. 87 Products and services development actions .. 88 Broadcasting, education and consciousness actions .. 88 7. Conclusions .. 89 8. Bibliography .. 91 Analysis of the Energy Sector in Spain and future perspectives 6 Dani Mora Romera 7 1. Introduction The total consumption of Energy has been decreasing since the beginning of the financial crisis, even though the economic situation in Spain has recovered.

9 In 20131, the total consumption fell a 6% compared to 2012. The main driver of this diminution of total consumption is the critical economic situation in Spain during the last 6 years, weighting the most the reduction in industrial activities in this period. Since the appearance of the renewable energies in the Sector , they have gained market share every year, establishing as an important activity in Spain . The country, which presents numerous sunny periods during all the seasons of the year, good wind conditions in many parts of the territory and many Hydroelectric Power centres built since Franco s dictatorship period, has available renewable Energy assets to further develop the Sector .

10 In fact, in 2013 the renewable Energy Sector provided 14,2% of the total supply of Energy in Spain , gaining 7,5% more market share than in 2012. Regarding regulatory issues, it s remarkable to mention the main changes undertaken in the Power Sector . First, the Ley del Sector El ctrico, which promotes the effective competition in the Power Sector , improving the position of customers facilitating both available information for them and the processes to change of supplier, which leads to a general improvement in the commercial part of it.