Nov 22, 2000, (Expansion /FT World Media Abstracts via COMTEX) à‚– The CNE, the Spanish regulatory body for the energy sector, is to allow Spanish electricity groups Endesa SA and Iberdrola SA to proceed with their applications to construct electricity plants in Tarragona.
This authorisation means that the CNE is applying an exception to the liberalisation act passed in June, according to which Endesa and Iberdrola may not increase their present quota in the market with new plants within five and three years respectively. Only those plants whose applications were already being processed in June may go ahead, or where there is a market need for electricity generation.
The CNE has judged this second situation to be the case for the plants planned for Tarragona. However, the decision is conditional on there still being a need for electricity when the plants are constructed.
Endesa has an agreement to construct 400 megawatt plant which will supply a Dow Chemical factory in Tarragona, whilst Iberdrola and RWE have a similar project to supply Basf in the same area.
Copyright 2000: Financial Times Information, Dow Jones, Dialog