Spanish Government Proposes New Electrical Cable to Morocco
The Spanish government, through the Ministry for Ecological Transition, is moving ahead with its ambitious electrical planning for 2030, which aims to mobilize a staggering €13 billion in investments for the national grid over the next five years. This plan, first announced in October of the previous year, includes a contentious project for the construction of an electrical cable connecting Spain to Morocco, a move that has raised eyebrows at the National Commission for Markets and Competition (CNMC).
This initiative isn't entirely new; it was part of the previous electrical planning cycle (2021-2026). However, the project's cost has dramatically increased, now estimated at over €400 million, a steep rise from the initial projection of €216 million. To put this into perspective, back in February 2019, Red Eléctrica announced a collaboration agreement between Rabat and Madrid, with the total cost at that time being just €150 million, meaning each country would contribute €75 million.
The most controversial aspect of this investment is its funding mechanism. The financing for this electrical planning is derived from access tolls, a component of the electricity bill. Consequently, Spanish consumers will be funding a third electrical cable to Morocco, despite the fact that both countries already maintain two existing connections. Industry experts argue that such singular investments should ideally be financed through 'savings' or congestion rents—essentially, the revenue generated from the price differences of electricity between the two interconnected systems.
As reported by theobjective.com.
