The French-Spanish electrical interconnection is amortized after four years of operation.

Red Eléctrica Española estimates the accumulated savings thanks to the Pyrenean interconnection at up to 528 million euros, which has already allowed its total amortization

It was October 2015 when the recently inaugurated electrical interconnection that, crossing the Pyrenees, unites Spain with France began to operate. Today, four years after the inauguration of this infrastructure, which connects the towns of Santa Llogaia (Girona) and Baixàs (Roussillon), Red Eléctrica Española announces that this infrastructure has allowed accumulated savings of 528 million euros for the national electricity system, allowing it to be amortized just 4 years after its inauguration.

As REE explains, 422 of these millions correspond to savings in the daily market, with the remaining 106 being additional income from congestion rents.

The work, financed equally by both Red Eléctrica Española and its French counterpart, Reseau de Transport d’Électricité, entailed an investment of 700 million euros, for which European funding of 250 million euros was provided. The cost of the work undertaken, which four years later is considered amortized from the Spanish side, contemplated the burial of the entire electrical infrastructure through the Pyrenees.

On the other hand, REE also points out that thanks to this infrastructure it has been possible to reduce the absolute average in the difference in electricity prices between both countries by 30% (from €16.72/MWh in 2014 to €11.58/MWh in the first half of 2019), also increasing the income of the Spanish electricity system by 55% from congestion rents (from €72 million in 2015 to €112 million in 2018).

Very far from the energy exchange target

Although this electrical interconnection made it possible to double the energy exchange ratio between the two countries, going from 1.4% to 2.8%, these figures are far from the target agreed with the European Union, by which Spanish electrical interconnectivity was to reach 10% by 2020, increasing it to 15% with 2030 as the deadline.