Spain may hold renewables auctions just for coal regions

The Spanish government is working to develop specific plans for Spain's coal regions affected by closures of thermal power plants, which may include holding renewable energy auctions tailored to these areas.

The commitment is one of several included in the government's agreement, signed last Friday, that serves to lay the groundwork for Spain’s “fair and just transition” to zero-carbon economy. The signatories are the Spanish ecological transition and labour ministries, labour unions CCOO and UGT and power companies Endesa SA (BME:ELE), Iberdrola SA (BME:IBE) and Naturgy Energy Group SA (BME:NTGY), the trio that already petitioned to have their coal-based plants closed.

The main purpose of the agreement is to find a joint solution to preventing job haemorrhage, maintaining economic activity and keeping people on their land once the old thermal power plants are dismantled. One of the proposals is to set up new renewable energy projects in their place.

Besides developing employment plans for plant workers and those in ancillary businesses, power companies have committed to supporting the transition by proposing investment in new renewables, as well as other projects they deem feasible in territories that house their coal-fired facilities.

For their part, the ministries have committed to searching for investors with projects that could be located in the affected areas. Regarding the energy policy, the ministry for ecological transition may tender grid access rights for new renewables or hold auctions just for these locations.

Stakeholder meetings are already taking place in the region of Aragon and will start shortly in Asturias, Castile and Leon, Galicia, Andalusia and Castile-La Mancha, the government said in Friday’s press release.

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