In its role as the Spanish electricity system operator, Red Eléctrica de España (REE) yesterday held the annual auction of the Spain-France exchange capacity for 2014. In these auctions, authorised agents can obtain the right to use the available exchange capacity between the two electricity systems in each and every hour of the year through the submission of bids.
In the direction France-Spain, 300 MW were offered and allocated with a final price of 9.48 €/MW, with capacity having been obtained by 8 of the 17 participating agents. In the direction Spain-France, 300 MW were also offered and allocated, establishing a final price of 3.43 €/MW, with capacity having been obtained by 9 of the 17 participating agents.
These annual auctions for the 2014 year, conducted in accordance with the European regulation for cross-border electricity exchanges, have generated revenue of 31 million euros. Half of this total, corresponding to Spain, is earmarked for reducing the regulated cost of the Spanish electricity system.
Spain and France are connected by four high voltage electricity lines, owned by both transmission agents: two in the Basque Country (one 400 kV connecting Hernani with Argia and another of 220 kV also connecting Argia with Arkale), one in Aragón (a 220 kV line between Biescas and Pragnères) and one in Catalonia (a 400 kV line connecting Vic with Baixas). This group of lines allows a maximum exchange capacity of about 1,400 MW to be reached.
Currently, REE and its French counterpart are building a new interconnection through the eastern Pyrenees that will double the electricity exchange capacity between Spain and France, to reach 2,800 MW.
Between Spain and Portugal there are seven lines: four of 400 kV and three of 220 kV that allow a maximum value of exchange capacity of between 2,000 and 2,400 MW to be reached. As in the interconnection with France, REE and REN are developing two new lines between both countries (one for Galicia and another for Andalusia) that will allow 3,000 MW of exchange capacity to be reached. Regarding Spain and Morocco, they are connected via REE’s two submarine electricity cables that provide a maximum capacity of approximately 800 MW.
The electricity interconnections between Spain and other electricity systems of western Europe and the Mediterranean basin, including the insular systems, represent one of the most important investments that Spain must undertake in the coming years to improve the meshing and integration of our territory.