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1 October 2007 - Spain is aiming to add around 2500 MW of combined heat and power capacity by the end of 2012, a Spanish industry ministry official told delegates at the recent DECX conference in Amsterdam.
Santiago Gonzalez of IDAE, the energy diversification and saving institute of the industry ministry, said the secondary market (heavy industry such as chemical works, ceramics and pulp/paper) was the key developer of CHP in Spain, most of it gas-fired, but IDAE's focus was now on the tertiary market (domestic dwellings and small commercial premises).
"There is still a big potential for CHP in Spain," Gonzalez said. "In the secondary market we see potential for 10 800 MW and in the tertiary market we see 6400 MW potential."
Five of the seven measures in a new sustainable energy action plan running to 2012 are specific to CHP, Gonzalez said. For instance, the state is funding six demonstration projects of 150 kW or smaller micro CHP systems, pushing these domestic heat and power units towards market viability and acceptance, Gonzalez said.
Furthermore, new regulation in May this year is set to play an important role in reviving CHP in Spain, where much of the existing 5875 MW of capacity was built before gas prices starting rising five or six years ago.
Under Spain's 661/2007 updated law, 'Special Regime' plants (CHP facilities of 50 MW or less and renewable energy sources) receive support via a straight feed-in rate of a pool price-plus formula.
"The new law offers stability, with support rates updated on a quarterly basis instead of annually," Gonzalez said. "There are also new specific rates attached to the law, such as for biomass-fired CHP. This is very positive and ensures reasonable profitability.
On the negative side, Spain needs a new low voltage grid code, and the gas grid is still not fully extended," he concluded.
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