Spain’s Economic Activity and Energy
Lesson 8: Spain’s Economic Activity
Energy: A Basic Element of the Economy
1.1 Insufficient Energy Production
Energy sources are crucial in advanced societies due to their high consumption rates. Control over energy resources has significant economic, social, and spatial implications. Like many developed countries, Spain’s energy production is insufficient, requiring imports for over four-fifths of its consumption. Petroleum and natural gas imports are particularly significant. Spanish energy production has stagnated, with declining oil, natural gas, and coal production. Hydropower and nuclear energy production remain stagnant.
1.2 Energy Distribution
Efficient energy distribution is essential for a functioning modern economy. It powers households, businesses, services, and territorial development. Energy is distributed from production sites or import locations via power grids and oil and gas pipelines. These networks require constant maintenance, expansion, and improvement to minimize transport losses and meet energy demands.
Spain’s high-voltage electrical network, managed by Red Eléctrica de España, connects power plants with consumer distribution points. This network comprises 33,669 km of high-voltage lines and 3,000 substations. Spain imports electricity primarily from France and exports to other countries.
Natural gas is distributed through a 7,752 km pipeline network within the peninsula. Pipelines from Algeria, via Morocco and the Strait of Gibraltar, and through France, connect to the Spanish network. Another pipeline connects via Portugal. The network includes regasification and storage plants, primarily located in Barcelona, Cartagena, and Huelva. The natural gas distribution market is liberalized, with several companies participating, notably Gas Natural.
The oil pipeline network spans 3,835 km. Distribution begins at ports equipped to receive oil imports. These ports connect to eight refineries, which process crude oil into petrol, kerosene, diesel, lubricants, tar, and other products. Since 1992, the Spanish oil sector has been liberalized, with Cepsa and Repsol-YPF as major players. The distribution network is controlled by CLH (Compañía Logística de Hidrocarburos), focusing on storage, transport, and distribution.
1.3 Growing Energy Consumption
Spain’s energy consumption has risen with economic development, exceeding the EU average per unit of income. Between 1995 and 2007, primary energy consumption doubled. This increase leads to higher import costs, environmental problems from gas emissions, and geopolitical challenges.
The final energy consumption pattern has remained relatively constant since 1990. Industrial energy use has gradually declined due to decreased activity and increased efficiency, while transport and other uses have increased.
The Spanish government has implemented and extended a national energy plan focused on reducing reliance on oil imports, increasing natural gas consumption for lower pollution, promoting hydropower, and expanding renewable energy production. These objectives are pursued through National Energy Plans (PEN).
Regarding energy saving, the Spanish government’s 2008-2011 energy efficiency plan aimed to reduce oil imports and CO2 emissions by 10%. Spanish planning also seeks to increase the share of renewable energy in primary production.