Spanish veto of coal plant closures
Spanish government attempts to keep coal plants open
“Central Térmica de Iberdrola en Lada” by guitarraNalón is licensed under CC BY 2.0.
In 2017, the Spanish utility Iberdrola was exploring plans to close two coal plants, the Lada plant in Asturias and Velilla in Palencia, and to invest in renewables. At the time, the Minister of Energy from Partido Popular (centre-right) stated that Iberdrola should first look for a buyer for the coal plants, before announcing plans to close them. He argued that plants should only close because of a lack of profitability, and that the utility should not engage in larger energy planning. He signalled that the government was willing to provide financial support to avoid plant closures. The government drew up a decree establishing government veto power over any proposed coal closure, and stated that it would be necessary to consider the economic consequences of plant closure before closure could be approved. This was a strong resistance strategy, despite the fact that coal production and use had been declining in Spain over the past two decades.
This pro-coal stance has not lasted. In 2020, Iberdrola announced that they would close the plants. They also announced plans to retrain workers for jobs in nearby wind farms. In 2021, the Spanish government announced a new Climate Law proposing significant action on emissions reductions, including a plan to generate 74% of electricity used in the country with renewables by 2030.
Further reading
La Nueva España (2017): Carta al presidente de Iberdrola. Read here.
La Nueva España (2017): El ministro de Energía emplaza a Iberdrola a buscar un comprador para la térmica de Lada antes de cerrarla. Read here.
La Nueva España (2020): “Asturias tiene la oportunidad de relanzar su industria con la transición energética”. Read here.
Funding
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