The gross production of electricity has grown to 311 TWh according to figures that were still provisional when drawing up this document (mid-February). Natural gas provides around 30.5% when considering all the forms of electricity production, including cogeneration. Coal is in second position (first position if we refer only to electricity power stations), with a share of 24.2%. The production of wind energy recorded an increase of 16.2%, reaching 27 TWh. Here, mention must made of the fact that the contribution from renewable energies, with a view to gradually increasing their share, takes on importance with regard to a scenario of hydroelectric generation that is almost at a standstill as far as installed power is concerned and growing demand for electricity. Hydroelectric production, for example, has not reached 10% of total production when, in 1985, it generated 26.7% of Spain's electricity requirements.

The Spanish government's targets are in keeping with this idea and outline a scenario of 35,000 MW of power installed on wind farms by 2020 and 44,000 MW by 2030, when in 2007 we had 15,000 MW. A respectable figure, even though its potential depends on wind conditions.

Hydraulic production recorded falls over the year owing to the gradual loss of the reserves accumulated from the end of 2006 to the end of spring 2007. The average value for the year points to an increase of 3.9%, far below the 32% increase of 2006.* In 2005, Spain had 35 MW installed, with 100 MW at the end of 2006. At the end of 2007, the figure of 500 MW had been more than exceeded. Such was the rate that, halfway through August 2007, the ceiling set in the Renewable Energies Plan 2005-2010 had been broken and new targets have had to be set.

The production of biofuels is encountering problems with the definition of basic parameters at the start of their career. At the end of 2007, there were a total of 22 plants dedicated to producing fuels of plant origin in Spain. But only three worked at full performance.

Spanish legislation, which shall make it necessary to mix a minimum quantity of biofuels with petrols and gas oils, has been delayed more than anticipated, although one good outlet, at the moment, can be found in exports. Other factors that affect this sector include the United States subsidy for the production of biofuels and the depreciation of the dollar with regard to the euro. In 2007, Spain imported more than 150,000 tonnes of bio diesel from the said country, a figure that is higher than the national production (the operative capacity of our 22 plants totals 800,000 tonnes).

As far as cogeneration is concerned, the legislative uncertainties of last year have affected progress, especially owing to regulations that did not take into consideration the prices of the inputs (80% natural gas) used for cogeneration or its association with the prices of the electricity dumped on the network. This disadvantage has been solved (Royal Decree on the Special System 661/2007) and the power installed in the sector and the (highly efficient) production of heat and electricity are expected to continue growing. One of the cogenerators' targets is to double the power installed to 12,500 MW by 2020.