Current market conditions in Spain could force the country to phase out coal-fired capacity five years earlier than originally planned in 2025, Jose Bogas, CEO of Spanish utility Endesa, said on Thursday.
“Assuming coal-fired [capacity] should be reduced between 2025-2030 [under current energy policy], market conditions today say this has changed to 2020-2025, at least,” he told the El Economista conference in Madrid.
The country has seen significant fuel switching from coal to gas this year, with record high carbon prices and low gas prices seeing the profitability of gas plants trump that of coal units.
“If the market has no doubt and [coal capacity] has to close earlier than forecast, we will see,” said Bogas, pointing to uncertainty over the future power mix.
Current policy, along with a coal-phase out, demanded nuclear capacity to halve by 2030, with wind and solar set to triple.