A new update of the National Integrated Energy and Climate Plan, better known as PNIEC, has recently been approved. This update represents a new boost to the decarbonisation objectives already set out in the initial formulation of the Spanish climate plan, reflecting a significant increase in the country’s ambition regarding the sustainable targets to be achieved by 2030, less than six years away.
Original article in Spanish: Expansión
Author: Ángel Crespo, CEO of MET Energía España
The increase in climate targets is certainly commendable and reflects bold ambition. However, achieving these objectives will require addressing significant uncertainties and making important decisions about the way forward. Ensuring that the transition is inclusive and balanced for all energy sources involved in this new plan is essential to turning these aspirations into tangible progress. An example of this is the expected pace of progress for new solar or wind energy connections, which significantly exceed current levels.
In the case of photovoltaics, the target is to connect about 45 GW of new capacity, or in other words, about 6-7 GW each year, a level never before achieved. Similarly, we could also analyse the electricity storage capacity set for 2030 or the sharp increase of more than 110 TWh in electricity demand. This last challenge is one of the main areas of improvement pending in our country. In all these cases, the sector must have a plan that specifies how to achieve these milestones, and some of these numerical targets may need to be adjusted to ensure their viability.
In this regard, another major dilemma is what to do with the remaining 52% of energy that will still not be produced with renewable sources by 2030, according to PNIEC. This raises the question of what solution to offer industries, including heavy transportation and other sectors.
The new plan establishes that the industry must reduce its emissions by 40% compared to 2019 levels. To this end, emphasis is placed on two main aspects for the industrial sector. First, promoting electrification and self-consumption, as well as energy efficiency. Despite the desire, continuous and remarkable advances in the sector - especially in energy efficiency – it is important to note that for a large part of the heat-intensive industry, electrification alone is insufficient to achieve decarbonisation, and other complementary solutions must be included.
Secondly, as an alternative for most of the industry that is unable to electrify, PNIEC advocates for a greater use of green hydrogen, increasing from 4 GW to 12 GW in electrolysers. While renewable hydrogen and its derivatives can become a long-term interesting alternative for industry or heavy transport, it is essential to remember that it is currently a developing energy vector and significantly more expensive than natural gas, with prices ranging between 4 and 6 euros per kilogram compared to 0.7 euros/kg for natural gas in the industry.
In addition, PNIEC sets a target of 74% for hydrogen used industrially by 2030 to be renewable, which is significantly higher than the 42% agreed by EU member states last year. Achieving this increase without sharply raising energy costs for the entire industry is a challenge that needs to be addressed.
It is therefore important to chart a path towards decarbonisation that does not stifle the industrial sector, which requires actions based on the premise of technological neutrality. Consequently, the use of natural gas by industry remains the best energy option to ensure the viability, reduce polluting emissions and maintain the competitiveness of the industrial fabric.
In this way, natural gas is key to an orderly and efficient energy transition, ensuring security of supply and affordable prices. It is important to note that natural gas is the fossil fuel with the lowest environmental impact of all those used, both in the extraction, transformation and transportation stages, as well as in the utilisation phase. Additionally, according to the Ministry of Ecological Transition, its emissions are 40-50% lower than those of coal and 25-30% lower than those of fuel oil. Furthermore, natural gas maintains and will continue to maintain its advantages as a reliable, safe and accessible energy source, with an extensive existing infrastructure and competitive prices, making it the most sustainable option for the heat-intensive industries. It also serves as an energy back-up that ensures the orderly development and implementation of renewable energies without compromising the industrial fabric.
In conclusion, PNIEC is a valuable tool for advancing the energy transition. However, throughout this process, it is essential to maintain a holistic perspective that considers all energy sources, including natural gas. In this context, natural gas is not only a central supporting element in this transition scenario, but also a means to carry out this transformation safely and competitively.