Iberdrola Chairman Calls For Government Investment

Spain's energy industry requires 50 billion Euros of investments between now and 2020, with a further 60 to 90 billion Euros from 2020 to 2030, Ignacio Galan, the chairman of Spain's largest power utility Iberdrola SA reported on Wednesday.

The investment in the next decade will be needed to upgrade electricity grids and power links to neighboring countries to absorb a larger share of renewable power output, Galan said. He spoke after attending an energy committee at the Spanish parliament.

In the 2020 to 2030 period, new electricity generating capacity will be needed, however, to meet the country's expected growing power consumption due to economic growth.

Galan said the sector would require 60 billion Euros of investment for new capacity if Spain's current nuclear plants were to be allowed to continue operating. If the government sticks to its plan to phase out nuclear power, the sector would instead require 90 billion Euros of investments in the 2020 to 2030 period, he said.

Keeping current nuclear production, Spain would need to add 14 gigawatts in new conventional power capacity, plus 18 GW in renewables capacity, Galan added.

If nuclear power were to be phased out, the country would instead need 21 GW in new conventional power capacity, endangering Spain's targets to reduce greenhouse gases by 2050, he said.