Spain ups planned power grid investment to over €17 billion through 2030

MADRID, Sept 16 (Reuters) - The Spanish government has decided to increase investment in the electricity transmission network to more than €17 billion ($19.6 billion) through 2030, around 30% more than initially planned, Energy Minister Sara Aagesen said on Wednesday, citing rising demand for electrification.

• Spain's rapid expansion of renewable energy capacity as well as new demand coming from large energy users such as data centres have increased the need to invest in power grids.

•  "This is the largest investment in grids in the history of this country," Aagesen said. She also said a public consultation process had shown a significant increase in demand for power connections from industry, housing and renewable energy projects.

• General demand for electricity accounted for 41% of proposals received in the consultation, followed by power generation projects at 40% and energy storage at 19%.

• The investment is aimed at supporting national energy transition goals and meeting targets under its 2023-2030 National Energy and Climate Plan.

• Aagesen also said Spain will shortly publish rules creating an auction-based capacity market for the electricity system, open to power generation and storage firms, as well as some customers.

• Under the mechanism, participants would receive compensation for being available to inject electricity into the grid or for reducing consumption during peak demand or stress events.

($1 = 0.8666 euros)

(Reporting by Emma Pinedo, Pietro Lombardi and Benjamin Mejias, editing by Andrei Khalip and Tomasz Janowski)