Polish-Spanish workshop CHALLENGES FOR THE COAL INDUSTRY IN THE EU Different views on coal industry in Europe: SPAIN Pedro Iglesia Katowice, Poland, 9-10 May 2018
Distribution of indigenous coal production by Regions. Year 2017 Asturias: 0,43 Mt Hard coal: 0,948 Mt Castilla y León: 0,52 Mt Aragón: 1,833 Mt Asturias... 0,43 Mt Castilla y León (León y Palencia)... 0,52 Mt Castilla la Mancha (Ciudad Real)... 0 Mt Castilla La Mancha: 0 Mt Black Lignite : Aragón... 1,833Mt 1,833 Mt total Production2017 2.781.000 toneladas Source: MINETAD y CARBUNION 2 9-10 th May 2018
Indigenous Coal historical evolution Source: CARBUNION Historical evolution 1960 1970 1980 1990 2000 2010 Indigenous coal production (in Mt) 15,3 13,6 28,7 36,0 23,5 8,4 Miners 94.000 53.958 51.008 47.320 18.387 4.594 Companies 433 222 171 197 149 17 3 9-10 th May 2018
4 9-10 th May 2018
1000x tonnes Period 2011 2017: Production 7.000 6.621 SPAIN - INDIGENOUS COAL (1000x tonnes) 6.145 6.000 5.000 4.000 4.262 3.891 4.370 3.901 3.000 2.000 1.000 2.359 2.254 2.543 1.827 2.671 1.230 1.724 3.043 1.319 2.781 1.742 1.833 1.012 948 730-2011 2012 2013 2014 2015 2016 2017 Hard coal Black lignite Total indugenous coal 5 9-10 th May 2018
Period 2011 2017: Employment 6.000 5.825 SPAIN Coal mines: total employees 5.000 5.054 4.371 4.000 3.715 3.000 3.963 3.655 3.324 2.000 3.279 2.740 2.697 2.054 2.197 1.675 1592 1.862 1.399 1.092 975 627 605 379 1.000 0 2011 2012 2013 2014 2015 2016 2017 Own staff Contractors Total manpower 6 9-10 th May 2018
Period 2011 2017: Companies Number of Companies 21 20 18 16 14 10 8 2011 2012 2013 2014 2015 2016 2017 7 9-10 th May 2018
Period 2011 2017: State Aid 8 9-10 th May 2018
Spain, Dec 2017 : Installed Power vs Electric Generation Estructura de potencia instalada peninsular Source: REE. 2017 Dec Prepared by CARBUNIÓN Estructura de generación mensual peninsular (1) No incluye la generación de bombeo. 9 9-10 th May 2018
SPAIN: Electric Generation 2016 vs 2017 Source: REE. 2017 Prepared by CARBUNIÓN 10 9 10 th May 2018
1000X TONNES SPAIN - Thermal coal consumption 26.299 INDIGENOUS COAL IMPORT COAL 25.000 20.000 15.000 20.214 13.593 20.154 15.419 11.049 18.498 14.597 20.357 17.314 14.616 20.100 17.300 12.874 10.000 6.621 6.145 5.000 4.370 3.901 3.043 1.742 2.800 0 2011 2012 2013 2014 2015 2016 2017 Source: MINETAD (DGPEM Est. Minera y IRMC), w2m, IHS. Elaboracón propia Import Indigenous 17.401.000 t 2.781.000 t + 35 % + 60 % 11 9-10 th May 2018
Geo-politics influences our imports? 2016: indigenous coal versus imports from undemocratic regimes? Country coal gas Freedom in the World 2017 The Economist Intelligence Unit imports % suppliers % (FH) (EIU) Colombia 36% 64 partly free country ranked 57 - Authoritarian Rusia 23% 20 not free country ranked 134 - Authoritarian Indonesia 22% 64 partly free country ranked 48-167 Flawed democracies R Sudafricana 7% 78 free country ranked 39-167 Flawed democracies Argelia 57% 35 not free country ranked 126 167 - Authoritarian Nigeria 15% 50 partly free country ranked 109 - Hybrid regime Francia 10% 90 free country ranked 24 - Flawed democracies Paises del Golfo 8% 26 not free country ranked 135 - Authoritarian Otros 12% 10% España 94 free country ranked 17 Full democracies FH = Freedom Aggregate Score (0=worst; 100 = best); Source: Freedom in the World 2017 EIU = The Economist Intelligence Unit (1 out of 167) ; Source: Democracy Index 2016 Otras fuentes: Eurocoal, Sedigas. Elaboracion propia CARBUNIÓN 03/2017 12 9-10 th May 2018
Source: Eurostat database nrg_105a last update 1.02.2018 (n.b. coal includes peat* and oil shale**) Energy mix for EU electricity generation, 2016 Coal Platform, Brussels, 27 February 2018 14 9 10 th May 2018
Europe continues to consume coal to generate energy, and countries do not abandon the consumption of their own resources. 637 Mt 60 % 13 % 27 % 13 9 10 th May 2018
Last news from Spanish Coal Industry 1 In Spain, coal production in 2017 increased by 64.7%, to 2.8 Mt. Figures for coal imports show an increase to 19.2 Mt (30.4%), the highest for three years. Coal-fired power plants generated 45.2 TWh in 2017, covering 17.2% of the Spanish electricity market. The Spanish government has shown strong support for coal, further reinforced by a March 2018 appeal by CARBUNION, the Federation of Spanish Coal Producers, and the main Spanish unions, UGT and CCOO, to support domestic coal power plants until 2050. 15 9-10 th May 2018
Last news from Spanish Coal Industry 2 On the power market, the Spanish utility Iberdrola announced its intention to close its two remaining coal-fired power plants, Lada and Velilla which have a combined capacity of 874 MW. Negotiations with the Energy Minister are in progress regarding the coal plant closures. Other major energy companies are waiting for the Energy Transition and Climate Change Law to finalize before taking any decisions regarding their coal assets. Meanwhile, in November 2017, the European Commission opened an investigation into Spain's support for coal power plants. 16 9-10 th May 2018
Last news from Spanish Coal Industry 3 Spanish Government is currently analysing the report for an energy transition to 2030, approved in March 2018 by a Group of Government appointed experts (Comisión de Expertos de Transición Energética). April 12, 2018. The Minister of Energy promotes the participation of Spain in the European Platform of Transitional Coal Regions, sending today letters to the Vice President of the European Commission, Maroš Šefčovič and the Commissioner for Action for Climate and Energy, Miguel Arias Cañete, where he expresses the support of the Government of Spain. The Autonomous Communities of Castilla y León, Asturias and Aragón will participate in the Platform. April 27, 2018. The Government proposes to the Parliament a new Law to take control of the closure of thermal and nuclear generation plants, currently in the hands of electric companies. 17 9-10 th May 2018
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