Gross electricity production increased to 317.7 TWh, according to the latest available official figures from the Ministry of Industry, Tourism and Trade at the time of going to press. This refers to total electricity production, and therefore includes electricity that is produced and consumed by the production source, such as co-generators.

There was a notable increase in the amount of electricity produced by cogeneration with gas during the final quarter of 2008. Further to the change in regulations during 2007, as mentioned in last year’s report (Special Regulation Act 661/2007), it should be mentioned that the Act was partially amended in September 2008 to strengthen the rules governing timetable differentiation. This may have given a boost to cogeneration among business that operate for around 80 hours a week but close at night and during holiday periods.

Coal relinquished its second place in 2008, another significant event, and it now occupies third position with a 15.8% share, as compared with 24.2% in 2007. Second place is now held by nuclear energy, with a share of 18.6%.

This fall was the result of the smaller contribution made by hydro-electricity, for the reasons explained above. All other forms of renewable energy increased their stake in the production of electricity, the most significant examples being solar photovoltaic production, which supplied a total of 1,900 GWh (tripling the figure for 2007), and wind power which supplied 31,135 GWh.

The President of the Spanish government and the French Prime Minister signed an agreement at the end of June in which they made a commitment to create a joint company that would take charge of establishing an inter-connected electricity network between their two countries. As promised in the agreement, this joint venture, known as Inelfe, was set up during October 2008. Its duties will include overseeing the project to build a new inter-connected network between Spain and France, planned for completion by 2012. Power lines will be buried underground between Santa Llogaia d´Aguema in the province of Gerona, northern Spain, and Baixás in France.

The inter-connected electricity network with Portugal has been substantially extended in recent years, particularly since the Iberian Electricity Market (Mibel) was created. Two new lines connecting Spain and Portugal have entered service over the last five years, while it is more than 25 years since a new connecting line was installed with France.

Within Spain itself, the Peninsular and the Balearic Islands will be connected via an electrical power line by 2010 (the first underwater line in Spain and only the second in the world carrying a continuous high-tension current). There will also be a natural gas link, though this is scheduled for completion a year earlier.