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Spain opens 937 MW of grid capacity for RES and storage in a coal phase-out just transition area

Spain opens 937 MW of grid capacity for RES and storage in a coal phase-out just transition area

The Spanish Ministry for the Ecological Transition and the Demographic Challenge (MITECO), through the Institute for Just Transition (ITJ), is launching a procedure to allocate 937 MW of grid access capacity to new renewable energy and energy storage projects at the 400 kV Mudéjar substation, designated as a just transition node, in the province of Teruel. Earlier, 265 MW were allocated to Enel Green Power, the winner of a tender held in support of just transition areas.

The project selection procedure is designed to prioritise projects at a more advanced stage of development and ensure the rapid allocation of capacity. The allocation is conditional on the acceptance of socio-economic commitments benefiting the region.

An additional factor supporting the accelerated implementation of the projects is the decision taken by the Council of Ministers on 28 July to designate projects selected under the procedures for allocating capacity at just transition electricity nodes as “strategic energy installations.” This status means that the projects will be processed under an urgent procedure, which cuts administrative timeframes by half, and will receive priority attention from the relevant authorities in the administrative procedures required for their implementation.

Local socio-economic benefits

The proposed regulatory framework also ensures that the facilities applying for grid access capacity are relevant to the region by requiring the submission of a socio-economic plan that provides an additional positive impact, similar to the plan required under the tender already held.

For each MW of installed capacity, projects will therefore be required to commit to at least one full-time equivalent job, training for one person for a minimum of 60 hours, 2 kW of self-consumption capacity for users in the region, and an investment of €10,000 in the Teruel value chain. All these commitments will be backed by a specific guarantee of €120 per kW of installed capacity.

To support the economic recovery of the region, since 2019 MITECO, through the ITJ and other institutions, has deployed a range of support instruments. To date, up to €534 million in financial support has been provided for 182 business and municipal projects, environmental restoration projects and social assistance measures in municipalities in Aragon affected by the closure of mines and the thermal power plant.

Source: Spanish Ministry for the Ecological Transition and the Demographic Challenge (MITECO)

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