Spain should support its domestic natural gas-fired power plants to be available to provide electricity when needed, and such regulation is “urgent and necessary,” according to the president of Spanish gas industry association Sedigas. The so-called capacity mechanism would pay gas power plants to be available for generation when necessary, amid soaring shares of the intermittent solar and wind power generation.
Cheap power prices have hurt the profits of Spanish utilities but they have been a boon to consumers as retail prices have reflected lower wholesale electricity prices. Last year, renewables made up 50.8% of Spain’s electricity mix, rising from a 42.2% share in 2022.
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