IEEE Power & Energy Magazine - November/December 2014 - 43

via pipelines with Algeria, France, Morocco, and Portugal
and has six regasification plants. This infrastructure is illustrated in Figure 9.
Regasification, transmission, storage, and distribution are
all regulated activities that are not subjected to competition.
Indeed, regasification and storage are regulated precisely
because of the very important role played by LNG plants and
their associated storage facilities. The operator currently uses
a physically based balancing model to operate the system.
A hub model based on bilateral transactions may be implemented in the future. The purpose of moving to a hub trading model would be to achieve higher liquidity and greater
market competition.

figure 5. The European natural gas network (source:
Entsog).

84
82
80

Natural Gas

november/december 2014

78
(%)

76
74
72
70
2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

68
2000

The liberalization of the gas sector in Spain is directly linked
to the EU directive promoting competition in this sector.
Gas demand includes two blocks, one pertaining to residential and industrial consumption and the other pertaining to
electricity production, which accounted for 71% and 29% of
total gas demand, respectively, in 2011. Total consumption in
2011 was 34.6 billion m3, 76% of which was imported in the
form of LNG and 24% via pipelines, coming from three principal supply countries: Algeria, Nigeria, and Qatar (the total
number of supply countries is 14). Spain is interconnected

2001

market; they are managed by the market operator. The balancing market is managed by the system operator, which
guarantees supply security even with a high integration of
stochastic generation.
The electricity market of Spain has been fully integrated
with that of Portugal since 2007. It is operated as a single
market, with market splitting in case of border congestion.
The interconnection between Spain and France has very
limited capacity (below 3% of the peak demand is Spain),
which prevents an effective integration of the unified market
of the Iberian Peninsula with the rest of Europe.
The electricity market of mainland Spain is characterized
by weak interconnections, a high percentage of stochastic
production facilities (mostly wind-based), limited storage
capacity, and a declining demand. Spain relies increasingly
on CCGTs to ensure supply security, which strongly links
the electricity and gas sectors. Although most CCGTs were
designed to operate as base-load plants, as a result of Spain's
high level of wind integration the CCGTs change their production levels continuously and start up and shut down often.
This pattern of operation is very costly for the CCGTs and
leads to volatile prices in the day-ahead, adjustment, and balancing markets. This situation is illustrated in Figures 7 and 8.
Figure 7 depicts two dramatically different operating regimes
for a CCGT: that of a month with a high percentage of wind
production (March 2013) and that of a month in which the
wind production was not so high (March 2009). Figure 8
illustrates the start-up and shutdown regimes often imposed
on CCGTs, which result in high maintenance costs.
Red Eléctrica de España's Electricity Control Centre
(CECOEL) is the electricity control entity in charge of the
operation of both transmission and generation facilities. To
ensure an appropriate security level, it operates two redundant control centers sited in two different locations. It manages all the information flow needed for an efficient and
secure operation of the electric energy system. Operational
procedures, approved by Spain's Ministry of Industry, are
implemented as needed to ensure the correct operation of the
system. Red Eléctrica also runs an entity charged specifically
with controlling renewable plants (CECRE). CECRE filters
renewable production information and makes possible an
efficient communication among many renewable production
facilities and with CECOEL.

figure 6. The energy dependency of Spain on foreign
sources (%).
ieee power & energy magazine

43



Table of Contents for the Digital Edition of IEEE Power & Energy Magazine - November/December 2014

IEEE Power & Energy Magazine - November/December 2014 - Cover1
IEEE Power & Energy Magazine - November/December 2014 - Cover2
IEEE Power & Energy Magazine - November/December 2014 - 1
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IEEE Power & Energy Magazine - November/December 2014 - Cover3
IEEE Power & Energy Magazine - November/December 2014 - Cover4
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