Renewables Versus Efficiency. A Comparison for Spain

Abstract

Along the last decades, renewable energy (especially wind) in Spain has undergone a significant development (lead by a small group of renewable promoters supported by institutional policies), contributing significantly to electric generation mix (42.8% renewable in 2014). On the contrary, the promotion of energy efficiency actions (accomplished by a large number of industrial and domestic consumers that are very poorly supported by energy policies), are still little explored. According to ODYSSEE-MURE, energy efficiency at the EU-28 level improved by 1.2%/year on average from 2000 to 2013, while for the case of Spain, the rate of improvement was only 0.6%/year on average throughout that period (the lowest rate of energy efficiency improvement in the EU-28). This work seeks to compare the integration of renewable production with energy efficiency plans, in order to advance their potential economic impact in the wholesale market and consumers. To reach that goal, the hourly market data retrieved from the Spanish/Iberian Market Operator (OMIE) for 2014 will be used as a base. Then, a set of pseudo-heuristic scenarios with integration of renewable production and energy efficiency (load saving) will be elaborated and analyzed to quantify what are expected to be the main effects on the Spanish electricity market and consumers. The results will show that energy efficiency exhibits the best performance in terms of economic efficiency (less cost of the traded energy) and environmental sustainability (greater replacement of fossil fuels).