The potential of biomass in Spain can be estimated in 20-25Mtoe per year. In 1996 about four percent of total primary energy consumption was biomass. To meet the objectives of 12 percent RE production by 2010 a total of 8-8.5Mtoe per year will have to be produced in biomass by that year. At present, agricultural residues form most part of biomass. The sustainable potential of forest residues and energy wood production can be estimated to be some 2.5Mtoe/yr, of which only about 0.7 are utilised. Most of the energy from biomass is utilised for the production of heat in the domestic and industrial sectors.
A. INSTITUTIONAL ASPECTS
A.1. - POLICIES, STRATEGIES AND PROJECTS
The RE programme is part of the Energy Saving and Efficiency Plan for the period 1991-2000. It sets the targets for renewables to be introduced during this period. Besides, there are several Regional Plans aiming to promote the use of renewables. There are no specific policies in place, which consider the use of biomass in detail. The Spanish Energy National Plan has established energy development strategies to be followed until the year 2000. Within this, the Economy and Energy Efficiency Plan has specific strategy for renewable energy to be implemented through the RE programme.
A.2. - THE ROLE OF TECHNICAL AGENCIES
Governmental Organisations involved:
· CIEMAT - Centro de Investigacionnes Energeticas Medioambientales y Tecnologica is a public R&D organism owned by the Ministry of Industry and Energy, which gives technical support to commercial projects in the country. Its main activities are the development of energy crops, the standardisation of methods for solid biomass fuel analysis, development of methods and evolution of externalities of biomass systems40.
Non Governmental Organisations involved:
· UNION FENOSA ENERGIAS ESPECIALES - is a company 100 percent owned by the Spanish Utility Union Fenosa and whose principal objectives are: promotion, design, and operation of Electric power plants from RE. It carries out technical and economic studies on energy crops and SRF.
· ICAEN - the Institute Català d'Energia is a regional agency under public Law set up by the Catalan Parliament. Its purpose is to optimise energy resources management. It provides feasibility studies technical assistance and dissemination of information.
· SODEAN - the company for energy development in Andalusia is a Regional agency belonging to the Institute of Economic promotion that is in charge of energy management and RE.
The Electricity Law of November 1997 related to the electricity Regulation establishes the obligation of realising a new Plan for the promotion of RE aiming to achieve a 12 percent penetration in 2010.
_ FINANCIAL REGULATIONS
FINANCIAL INCENTIVES FOR THE PRODUCTION OF ENERGY CROPS:
In Spain "set-aside" regulation exist.
FINANCIAL INCENTIVES FOR THE CONVERSION OF ENERGY CROPS:
The development of biomass projects can receive a subsidy of up to 30 percent on the eligible cost. Over the period 1996-1999 the Spanish authorities are contributing 115MEURO to energy efficiency and RE projects which are also aided by EU regional development fund.
FINANCIAL INCENTIVES FOR THE UTILISATION OF ENERGY FROM ENERGY CROPS:
Total tax exemption from the special tax on hydrocarbons for non-conventional fuels is fixed. Special tariff exists for electricity produced from renewables.
An order of the Ministry of Industry and Energy (28/3/95) sets the basis for the concession of subsidies within the framework of the Energy Savings and Efficiency planned for the period 1995-1999. The use of bioenergy may be subsidised up to 20 percent of cost. The use of biomass for the production of electricity can be subsidised to a maximum of 15 percent of eligible cost. There have been no specific developments in harvesting and processing of energy crops in Spain.
_ FUEL
No wood fuel standard is identified.
40 CIEMAT - AFB-NETT Phase IV, "Interest of Spain in collaborating activities and biomass", Report for meeting in Bruxelles, Jan.'99