Spain hydro reserves flat, ag reservoirs edge up

 

Spanish water reserves to generate hydropower and irrigate crops have halted a months-long slide in the major gas and grain importer, official data showed on Tuesday.

Hydroelectric reservoirs held enough water to produce 12,709 gigawatt-hours HYDRO-CPCTY-ES, a decline of 12 GWh on the week, said the latest bulletin from the Ministry for the Environment and Rural Affairs.

That would be sufficient, by itself, to supply Spain's average electricity needs for 18 days and while reserves fell over the summer, they are still 47.8 percent above average after an unusually wet winter and spring.

Hydropower output tends to displace gas-fired generators and undermine wholesale power prices and affect utilities such as Iberdrola, Endesa, Gas Natural and Hidrocantabrico.

Hydro plants have been running slowly during recent dry months and recently forced prices up to 20-month highs, but traders say autumnal rain could bring prices down again.

Spain imports more than 99 percent of the 40 billion cubic metres of gas it burns every year, mostly in the form of liquefied natural gas (LNG), of which it is the world's third-biggest importer.

BELOW-AVERAGE RAIN

The Ministry recorded rainfall that was 36.1 percent below average for the week to Oct. 17 at 9.9 millimetres HYDRO-PEN-ES, although it has heavy enough to cause severe flooding in some regions.

Reservoirs kept aside for consumption, including agricultural use, meanwhile stood at 64.5 percent of capacity HYDRO-CONS-ES, up from 64.3 percent last week, and comfortably above an average of 40.5 percent.

In Spain's harsh climate and poor soil, crops like maize need irrigation to grow and ease the country's structural grain shortfall, which requires imports of at least 10 million grains a year from Argentina to Kazakhstan.

Spanish farmers also irrigate rice, cotton and alfalfa, a key ingredient in animal feed, which is also produced for export.