Posted July 21, 2022 at 12:14 p.m.Updated July 21, 2022 at 5:42 p.m.
“We cannot assume a disproportionate sacrifice on which we have not even been asked for prior comment. Spanish Minister for Ecological Transition, Teresa Ribera, vehemently opposed the European Commission’s plan published on Wednesday 20 July and called on all member countries to save 15% on gas consumption. She criticized an announcement made without consultation and without considering the differing realities of energy infrastructure.
“We will be united, but solidarity also means that we will not make the Portuguese pay to compensate for the delay of others when, like us, they could have invested in renewable energy,” Portuguese Prime Minister Antonio Coast warned a few days earlier.
For his part, Greek Energy Minister Kostas Skrekas said that such a 15% reduction would very likely lead to disruptions in supplies to individuals and businesses. “Even if we reduce our consumption by 15 percent, that does not mean that more gas will flow to Germany,” which is largely dependent on Russian supplies, the Greek minister stressed. “Not only do we disapprove of the mandatory nature of this measure, but also of the level of reduction advocated by Brussels,” he added.
Without listening to the south
Marking their difference, the two countries of the Iberian Peninsula rebel against the decisions made in Brussels, without listening to the South. They argue that their very low dependence on Russian gas, green energy investments and high storage and regasification capacities put them in a different situation than Northern Europe.
“Spain has not lived beyond its energy capacity,” slipped Minister Teresa Ribera, recalling how, at the time of the 2008 financial crisis, the countries of the North made the South pay hard for “wastefulness” and accused them of living beyond their means.
For Madrid, as for Lisbon, it is about being heard, while historically the volume of interconnections between the Iberian Peninsula and the north of the Pyrenees has always been very small.
It is precisely this “energy island” situation that has led Spain and Portugal to build large storage facilities over the years, which are now used mainly for gas from the United States, but also from Nigeria.
Overall, Spain hosts 34% of the European Union’s regasification capacity and 45% of LNG storage capacity in underground facilities and tanks, according to Enagas, the gas network manager.
An advantage given the Russian pressure
These facilities make the Iberian Peninsula a key strategic asset in the face of Russian pressure, and the two neighbors are willing to share their funds with the rest of Europe.
But in Madrid, as in Lisbon, we also underline the economic effort that has meant for Spanish and Portuguese consumers the financing of these infrastructures and the development of renewable energies, which represent half of the production capacity.
Last March, the Spaniard Pedro Sánchez and the Portuguese Antonio Costa called unanimously for “the Iberian exception” in order to be able to temporarily exit the European electricity market, which is too heavily influenced by gas prices. This time they want to be heard and are calling for a European Council to be convened so that the states can debate.
“Respond Effectively”
“We want to be united, but to respond effectively we must ask ourselves how we can do better,” stressed Spanish Minister Teresa Rivera.
Why jeopardize certain industries by forcing a 15% cut on non-Russian gas? Especially when, on the contrary, part of the capacity can be made available to the rest of Europe, as long as the gas pipeline network allows it.
In fact, since the beginning of the war in Ukraine, the two gas interconnectors with France via the Basque Country and via Navarre have been working at full capacity to transport gas to France.