Guaranteed supply amid political and energy shifts in Spain

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Guaranteed supply?

The results of the 23-J polls are still unsettled, raising the specter of gridlock if no candidate can secure the mandate to form a government. Political groups are actively mobilizing as the country approaches the start of the new legislature. The makeup of the next administration matters far beyond personal ideologies, touching on key decisions about Spain’s energy policy and regional priorities. In this landscape, the influence of figures like Pedro Sanchez or Alberto Núñez Feijoo is only part of a broader conversation about governance and national strategy.

One crucial issue unfolds in Galicia where energy policy directly affects local industries and communities. At As Pontes in A Coruña, the plant has had two of its four production units back on line at roughly 350 megawatts each, while the remaining two units were placed on standby and eventually closed. The Moncloa facility, which shut in June 2022 but left a lingering smoke of uncertainty due to the Ukraine conflict, faced a closure decision that was revisited on September 19. The regional and national stakes are clear: the future of this plant is tied to debates over how best to ensure reliable power while managing costs and emissions.

Since the Russian invasion, gas prices have surged and coal has once again become a viable technology for electricity generation. Red Eléctrica has directed Endesa to reinstate the thermal plant, adding about 60 workers and arranging ancillary contracts to support operations. The plan, initially extended through June 2023 and then pushed to September, is now in a limbo moment as policymakers weigh whether to prolong the plant’s life to safeguard winter power supplies or to pursue other strategies. The question remains: will the plant be kept active, or will it be retired in favor of alternative energy sources?

Endesa Galicia has confirmed ongoing activity with union leadership noting the plant’s second coal batch began consumption, tallying just over one hundred thousand tonnes with aims to finish the current cycle between September and October. After that, leadership has signaled a series of safety adjustments, including the management of oils, fuels, and chemicals, while awaiting government guidance on the plant’s future. The union points out that the facility appears to be operating near full capacity even as it confronts questions about whether its continued operation is economically sensible or structurally necessary. This tension underscores the broader debate about balancing immediate energy security with long-term sustainability goals.

The absence of a clear political consensus can complicate the decision-making process. Prieto, a union organizer, stresses the need for a formal energy strategy led by a national manager tasked with coordinating the country’s approach to power generation, including the role of the As Pontes plant. He argues that depending on the new strategy, the plant’s fate could vary—from a limited, temporary continuation to a complete phase-out. For now, Endesa continues with its plan to shorten the plant’s footprint where possible while keeping the door open to further changes dictated by the political and economic environment.

Strengthening supply commitments

Despite ongoing tensions, the power system remains vigilant. The Ukraine conflict has sustained high fuel costs, and even the cost of fueling a typical vehicle has climbed sharply. In terms of energy resilience, the nationwide operator Red Eléctrica is focused on guaranteeing continuous supply. However, a cautious tone remains among industry observers and union representatives, who warn that closing the As Pontes plant would necessitate replacing its output with renewable capacity or other generation resources. The goal is to avoid gaps in supply during the critical winter months, a period when demand peaks and weather can intensify the strain on the grid.

During previous years, coal and gas filled gaps in generation, enabling capacity payments that helped assure reliability when strictly thermal plants were essential to cover demand. Looking ahead to 2025, there is a push for wind farms and solar projects to reach full capacity, potentially compensating for any reductions at traditional plants. Yet some projects face legal hurdles or cancellations, which complicates the roadmap toward a more renewable-heavy mix. In this environment, Prieto advocates keeping the As Pontes facility operational for as long as there is a reasonable warranty and a clear plan to transition away from fossil fuels in a responsible way.

Ultimately, the decision about the plant’s future will hinge on a comprehensive national energy strategy. A capable management body would align operational needs with policy objectives, ensuring that any continuation of coal-based generation is justified by reliability, affordability, and environmental standards. Until that framework is in place, the plant’s status remains a focal point of debate, emblematic of the larger challenge: how to secure steady energy supply while navigating political uncertainty and market volatility.

In this context, observers note that the country cannot afford a sudden collapse of generation that would force abrupt surges in prices or threaten cold-season resilience. The path forward will likely involve careful coordination between industry, government agencies, and labor representatives to balance immediacy with long-term objectives. Close attention to market signals, regulatory changes, and grid modernization efforts will shape the decisions surrounding As Pontes and similar facilities, determining whether they operate as temporary stabilizers or as transitional assets within a broader energy strategy.

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