March 5, 2021

Bogas believes that the renewables decree is a “step forward” to speed up investments


The CEO of Endesa, José Bogas, believes that the royal decree-law of the Government for the promotion of renewables and electrification is “a step forward and in the right direction” so that his company can carry out investments at this time of crisis , although there are still “regulatory uncertainties”.

Bogas, in an interview with Efe, says that the norm regulates something fundamental, the access and connection of renewables to the grid, the hybridization of projects, the management of the connection points of thermal plants that are closed and increases the limit of investments in distribution, a step in the direction of what companies in the sector had said, including Endesa.

However, although he considers that he has touched on very important issues, it is only “a first step, but there are still” regulatory uncertainties “.

From his point of view, if the goal is that, in the end, 100% electrification is reached, it is necessary to make it easier for people to consume electricity, but the price is a barrier and Spain has the fifth most expensive in the European Union.

Bogas attributes this fact to the fact that approximately 50% of the electric bill does not have to do directly with the electricity supply, but with taxes, fees and charges that have to do with a whole series of things that should be imputed to all consumers, not only to electricity.

In this sense, remember that the targets for renewables are a target for the country, not for the electricity sector, and electricity in terms of consumption represents 25%, compared to 50% of oil and gas, so, at Better, that cost should be shared among all consumers and not only paid by the electrical consumer.

INVESTMENT INCREASE

Bogas says that Endesa’s intention is to accelerate the investments that it has foreseen in its strategic plan for 2020, 2021 and 2022, in which an investment of 5.8 billion euros is contemplated.

He explains that “if there are sufficient regulatory, contextual and simplifying conditions”, Endesa could reach 7,500 million euros in the period, increasing investment in that period by 1,700 million, which is 30%.

Bogas says that in 2020 there will no longer be time to increase this 30% of investments, since it will be enough for the delays caused by Covid-19 to recover, so that the 30% increase in the three-year period would be concentrated between 2021 and 2022.

The CEO of the energy company says that royal decrees such as the one approved by the Government this week “are going in the right direction to be able to do it” and that “Endesa is going to put everything in its power to get it out as soon as possible” of the current crisis.

Regarding the decrease in electricity consumption caused by the covid-19 crisis, Bogas says he thinks that demand may recover in the last quarter of the year and that 2020 would close with a 7% drop, and by 2021 “we would enter in a normality. “

However, he warns that he does not know if this forecast will come true because the economic crisis, after the coronavirus health crisis, is “very deep and the exit will be a slow one, in which we have to put everything we have to our willingness to shorten it and get us out as soon as possible. “

In this output, he states that “the environment and the economy have to go hand in hand” and what needs to be done is to invest more in the energy transition to generate employment and avoid a crisis related to climate change. Because this, like that of the coronavirus, would be global, physical, would affect everyone without discriminating by race, social class, or country, and “an economic recession would follow.”

Regarding the new auctions of renewables that can be held this year, he says that Endesa will attend and that the objective set by the company in renewables is very ambitious.

THOUSAND ANNUAL RENEWABLE MEGAWATES UNTIL 2030

Remember that last year the company launched 900 megawatts (MW), being one of the few companies that met the execution deadlines established in the 2017 auctions, and this year it will install around 500 MW, although what Endesa wants to exceed 1,000 MW per year of renewables by 2030.

Regarding the electricity market, he affirms that there will be many changes in this decade in the model, since the price in the market will be less and less and the presence of more renewables will require firmness to guarantee the supply that power plants will have to provide. from other technologies.

“I think that from 2030 the model has to be absolutely different from what we have now,” says Bogas.

AUTHORIZATIONS OF COAL CENTRAL CLOSURES

Regarding the upcoming closure of the coal plants, he says that they expect authorization to close the Compostilla plants in León and Andorra (Teruel) this summer, and the next one the As Pontes (A Coruña) and Litoral, in Almería.

He explains that the royal decree-law approved by the Government helps the execution of Endesa’s plans to replace the maximum possible coal capacity that is closed with new renewable capacity, although it will be necessary to wait for regulatory development.

Bogas does not believe that the coronavirus crisis will delay the agreed closure of nuclear power plants in Spain, since the only thing he will do is accelerate investments, especially in renewables.

However, it considers that it is necessary to have “flexibility” and “adaptability” to manage other situations that may occur, as has happened in the case of coal power plants, whose closure has been anticipated to the date contemplated in the National Energy Plan. and Climate, which was 2025, because of lack of economic viability.

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