Highlights on Cogeneration Closures and Energy Policy Impacts in the Ceramic Sector

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Europe’s largest ceramic manufacturer, Pamesa Grupo Empresarial, announced the upcoming closure of its cogeneration plants this Friday, citing the current unsustainable situation created by high gas prices and ongoing regulatory uncertainty. The statement was issued under the leadership of Fernando Roig. Pamesa has long been a pioneer in integrating cogeneration technology into the clay atomization process for ceramic production since 1994. Over the years, the group invested in new facilities, reaching an installed capacity of 100 MW and committing about EUR 120 million to expand its cogeneration footprint.

The group notes that cogeneration linked to the ceramics industry remains the most efficient method for co-generating electrical and thermal energy. Efficiency translates to above 80%, compared with over 55% for modern combined cycles. Since the electricity market compensation mechanism, or the so-called gas ceiling, was approved on 14 June, electricity generated via cogeneration has fallen sharply. In response, some operators have increased combined-cycle production to bridge the gap caused by the reduction in cogeneration output.

The current energy landscape clearly demonstrates the impact of these shifts: more commissioning of combined cycles tends to push energy prices higher for consumers, while cogeneration capacity experiences pressure from regulatory and market changes. This dynamic has been observed across the sector and is reflected in regional energy pricing signals that affect end users [CITATION].

emissions

The situation has been linked by industry observers to a perceived lack of understanding about cogeneration technology, with some estimates suggesting a rise in CO2 emissions by roughly 25% in the atmosphere. The narrative notes that even as old coal plants have started up again due to energy inefficiencies and high emissions, the overall emissions profile has remained a critical concern. Recent days have shown elevated CO2 intensities associated with electricity generation, with implications for Spain and neighboring markets [CITATION].

The group also highlights administrative delays in issuing cogeneration fees. This issue aligns with the most recently published period in 2020, a factor that has meant production continued for an extended period without the corresponding remuneration regime approval. The regulatory framework requires updates and publication of the remuneration terms biannually to ensure proper application periods are met [CITATION].

Experts emphasize that the industry must balance the benefits of cogeneration — high efficiency, reduced fuel consumption, and a smaller carbon footprint — with the realities of price volatility and policy timing. As Pamesa moves forward, the focus remains on transparent communication with stakeholders, the integrity of energy accounting, and a pragmatic approach to sustaining industrial output while pursuing emissions reductions in the broader ceramic sector [CITATION].

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