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The “cost of not doing” energy planning: The Spanish energy bubble

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  • Gómez, Antonio
  • Dopazo, César
  • Fueyo, Norberto

Abstract

The Spanish power generation sector is facing dire problems: generation overcapacity, various tariff hikes over recent years, uncertainty over the financial viability of many power plants and a regulatory framework that lacks stability. This situation is the consequence of both poor energy policies and the economic crisis in the late 2000s and early 2010s. In this paper we analyze the following three points from an energy planning perspective: how the country has arrived at this situation; whether other alternatives would have been possible through adequate planning; and the quantitative benefits that would have been accrued from such planning. We do so by developing a LEAP model, and building three scenarios that allow to segregate the costs of the economic crisis from the costs of the lack of planning.

Suggested Citation

  • Gómez, Antonio & Dopazo, César & Fueyo, Norberto, 2016. "The “cost of not doing” energy planning: The Spanish energy bubble," Energy, Elsevier, vol. 101(C), pages 434-446.
    • Handle: RePEc:eee:energy:v:101:y:2016:i:c:p:434-446
    DOI: 10.1016/j.energy.2016.02.004
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    References listed on IDEAS

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    2. Manzoor, Davood & Aryanpur, Vahid, 2017. "Power sector development in Iran: A retrospective optimization approach," Energy, Elsevier, vol. 140(P1), pages 330-339.
    3. Mondal, Md Alam Hossain & Bryan, Elizabeth & Ringler, Claudia & Mekonnen, Dawit & Rosegrant, Mark, 2018. "Ethiopian energy status and demand scenarios: Prospects to improve energy efficiency and mitigate GHG emissions," Energy, Elsevier, vol. 149(C), pages 161-172.
    4. Mojgan Hojabri & Ulrich Dersch & Antonios Papaemmanouil & Peter Bosshart, 2019. "A Comprehensive Survey on Phasor Measurement Unit Applications in Distribution Systems," Energies, MDPI, vol. 12(23), pages 1-23, November.
    5. Lai, Chun Sing & McCulloch, Malcolm D., 2017. "Levelized cost of electricity for solar photovoltaic and electrical energy storage," Applied Energy, Elsevier, vol. 190(C), pages 191-203.
    6. Martín-Gamboa, Mario & Iribarren, Diego & García-Gusano, Diego & Dufour, Javier, 2019. "Enhanced prioritisation of prospective scenarios for power generation in Spain: How and which one?," Energy, Elsevier, vol. 169(C), pages 369-379.

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