Spain’s Energy Sector: Sources and Use
Energy in Spain
1. General Considerations on the Importance of the Energy Sector
Energy sources are essential for economic activities and improving the quality of life. The global territorial model increasingly relies on trade, which implies a steady increase in energy consumption. Thus, many countries (particularly the more industrialized ones) face increasingly conflicting consumption needs with limited production and self-sufficiency. Spain is no exception, with energy dependence being one of our constants: it has forced the articulation of policies that allow a diversification of energy production and a rational supply from other countries, according to the interests of Spanish energy companies and consumers.
Technical capacity for utilizing energy sources, international prices, the possibility of extending certain energies to new uses, and research continuously shape the energy sector. There are many economic and territorial interests behind the use of current resources.
The presence of energy sources is no longer, as in the past, a key factor for industrial location and/or attracting capital: energy sources such as oil or electricity can be transported easily, allowing consumption areas to be located far from producers.
Spain’s economic and social development has been accompanied by a large increase in energy consumption, also in production, but especially in imports given our very low self-sufficiency. The expansion of international trade in energy in the final part of the twentieth century has enabled us to diversify our supply sources, reducing the share of oil, increasing supplier countries, and looking for business alliances. Policies of economy and efficiency are essential to achieve greater competitiveness.
Energy-producing areas are, by now, appealing for the development of other economic activities. While we understand the importance of energy in maintaining our high quality of life, there is much controversy and social rejection regarding the human and environmental impacts that their production may have (burning coal, fuel oil, and gas in power stations for electricity and therefore air pollution, nuclear power and storage of waste, construction of dams and wind farms with their impacts on landscapes and rivers, etc.) and transportation (“oil slicks”). Authorities should ensure checks and technological improvements to mitigate undesirable effects on the area from production and consumption. In Spain, most energy-producing areas are in marginal, rural, and sparsely populated areas that have their hopes set on rural development projects (especially in Castilla y León). The presence of energy facilities requires land-use policies that are not limited to considering a site as simply unfit for a particular production, but taking into account sustainable development and other uses that promote economic activities in those territories.
2. Forms and Energy Utilization
2.1 Coal
Coal had great importance during the first industrial revolution. It has been relegated to the background by the appearance of oil. The 1973 crisis caused the reinstatement of this mineral as an energy source. But since 1984, coal consumption has remained steady, but its production has decreased due to:
- The depletion of different reservoirs.
- Decrease in domestic demand.
- The operation is expensive as some of the veins are deep, making it very expensive and dangerous to exploit. Therefore, domestic coal is 6 times more expensive than imports.
- Entry into the European Community liberalized the sector and ended protectionism, which requires conversion to the closure of numerous mines. However, the most important mines remain open thanks to public aid.
Coal production is located in large river basins such as Asturias, León-Palencia, and Teruel.
The destination of coal is in the steel industry, electricity production, and domestic consumption.