Endesa is set to pause in the energy node of Andorra, planning to present a guarantee worth 227 million euros on November 3. The company aims to submit the proposal to the ministry on the same day, aligning with the winning project from Spain’s first Just Transition competition that centers on thermal power paired with renewable energy integration. The move signals a shift toward a stronger commitment to the Andorra energy transition and its broader implications for the regional energy landscape, as reported by observers familiar with the case.
Endesa won the tender by bidding for 953 megawatts, yet 249 megawatts remained unassigned. A clause in the competition set a minimum installed capacity for any operator seeking a 250 megawatt project in Andorra. This meant Endesa had 10 working days from the award to either adapt the project or withdraw. While a revised proposal was anticipated, that deadline passed on October 24 without the Ministry receiving the required documentation. The Ministry of Ecological Transition subsequently granted an extension through November 3, allowing the company to finalize its plans without losing the award. This extension preserves the potential for the project to proceed at the agreed scale and reflects the government’s willingness to accommodate the schedule of major energy undertakings during the transition period.
On the same November 3 date, Endesa is expected to provide a 227 million euro guarantee to secure a total of 1,202 megawatts. Of the initial bid, 174 million euros were required in guarantees to cover the 953 megawatts. In essence, the ministry intends to ensure that Endesa remains bound to its stated commitments and advances the energy transition program with tangible financial backing. The financial assurances serve as a signal to stakeholders that the project will follow through on its stated objectives and timelines, even as the details of the deployment evolve during the assessment phase.
Endesa plans to expand its investment in the Mine Basins, originally projected at 1.2 billion euros. The exact increase has not been disclosed, but officials indicate a comprehensive program that includes five solar farms, five wind farms, and a large-scale battery storage system. The goal is to maximize the output from renewable generation while ensuring reliability through storage capacity that smooths fluctuations in supply. This approach mirrors modern energy strategies that blend diverse renewables with energy storage to deliver consistent power for consumers and businesses alike.
Additionally, the project envisions deploying an electrolyzer to manage surplus energy for green hydrogen production. Endesa has stated that it is cooperating with local component manufacturers to build a robust supply chain. The ambition is to create around 300 permanent jobs within the renewable value chain, particularly in hydrogen-related sectors, reinforcing regional economic development alongside decarbonization efforts. The plan emphasizes not only power generation but also the associated industrial and employment benefits that accompany a successful energy transition.
Judge the process?
A key question concerns the prize of the Andorra competition. Endesa’s dominant position in operating the node surprised other candidates who participated in the bidding, with a total of 11 projects submitted by ten different operators. Two contenders, Forestalia and Térvalis, carried branding from Aragon, signaling regional interest in the project’s outcomes. The selection has sparked a broader debate about governance and the distribution of opportunities among competing teams aiming to contribute to the energy transition in the region.
Sources close to the process indicate that potential challenges or appeals could arise from several bidders, including Iberdrola and Acciona. While steps toward formal appeals had not been taken immediately, the fact that a 1,202 megawatt allocation went to the operator of the Andorra thermal plant has raised questions among some observers about the contest dynamics and transparency. This situation suggests that there may be ongoing scrutiny and subsequent regulatory considerations as the parties review the decision and its implications for the market and the transition strategy. The outcome remains subject to further developments and potential legal scrutiny as the Andorra knot begins to untie, with stakeholders watching closely how the transition plan will unfold in the coming months.