Europe

Iberian Peninsula becomes an “energetic island”

Prime Minister Antonio Costa Spanish counterpart Pedro SanchesTo convince the European Council that the Iberian Peninsula should be given preferential treatment when it comes to setting energy prices.

At a joint press conference yesterday, Sanchez explained: “We have managed an important agreement that is very beneficial to Portugal and Spain. IBERICA’s exception to energy policy, its peculiarities are finally understood …”

Specifically, it means that “from today onward, we can offer additional temporary measures to the Commission,” the Commission confirms “with an urgent need to respect local law,” and both countries “energy costs.” It is expected to be able to “reduce”.

European Commission President Ursula von der Leyen confirms the news -However, IVA reduction (from current 23% to 13%) It cannot happen until it is “formally ratified” by the European Commission. At some point next week.

The purpose of Costa is “very clear. It is. The goal is to ensure that gas growth does not continue to affect electricity price increases … We will take steps to fix the highest gas prices that cannot exceed all other prices. “.

Costa emphasized that the Iberian Peninsula is an “energetic island” and by this agreement “It’s a huge savings for families and a huge savings for businesses.”

He admitted that cheap renewable energy sources are “increasingly important in pricing,” but during times of high demand, the country (same as Spain) must rely on other sources of energy: gas. It doesn’t become.

In the current market structure, gas determines the overall price of electricity when it is used, because all producers receive the same price for the same product when gas enters the grid.

With the approval of the European Council, Portugal and Spain will be able to control consumer prices, provided that they notify the European Commission before taking action and protect European competition.

Short-term measurements only

Nevertheless, these are Energy crisis caused by Russia’s invasion of Ukraine.

In the long run, Europe aims to reduce Russia’s dependence on gas (To the point where you don’t need it at all).

And for this to be truly successful, Prime Minister Costa returned to the subject of interconnection and linked the Iberian Peninsula with the wider European energy system.

This has always been a “plan in a melting pot” – It was simply unacceptable until now.

With the latest European deal with President Biden over the import of LNG (liquefied natural gas) Looks like Portugal Cinez harbor Will be sudden Strategic entry point for US gas to Europe in the end. OLast month, Foreign Minister Augusto Santos Silva hinted.

natasha.donn@algarveresident.com

https://www.portugalresident.com/iberian-peninsula-to-become-energetic-island/?utm_source=rss&utm_medium=rss&utm_campaign=iberian-peninsula-to-become-energetic-island Iberian Peninsula becomes an “energetic island”

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