FEDA’s Strategy Through Stakeholder Participation

There is a “crystal ceiling” for yearly energy consumption of 2,400 GWh, double the current consumption. In order to reach this quantity, new hydroelectric, solar, Aeolic, and gas generation projects will have to be put into practice.

Energy is an indispensable element for the development of a society. On a global level, two basic challenges are laid out when it comes to defining energy policy: the fight against climate change generated by global warming gas emissions; anticipation about uncertainties and tensions that will arise as petrol and gas production no longer are able to satisfy market demand.

In Andorra’s case, the current energy model means that we are greatly affected by this situation and must consider cost rises in energy and the risk of difficulties in order to satisfy demand.

FEDA, Forces Elèctriques d’Andorra, imports and produces electrical energy for Andorra and distributes it to a large portion of the country’s provinces. In the near future, it will carry out activities related to electricity and heating cogeneration as well as the tri-generation and commercialization of the resulting heat and cooling. It will also purchase electricity produced from renewable energies.

White Paper on energy in Andorra

As a main actor in Andorra’s energy sector, FEDA, in conjunction with the Andorran government, led the development of the White Paper on energy in Andorra. The object was to collect thoughts and proposals for creating a new energy model that would guarantee the country’s energy supply in a sustainable manner without ignoring the need to achieve stable energy costs that are compatible with the country’s development level.

This task has to be completed at a moment when the country is working toward diversifying its economy, negotiating non-double-taxation agreements with other nations, creating a new relationship with Europe, and adapting the services vision and utility management of FEDA to the needs of our customers and country.
Therefore, for the creation of this White Paper, we took into account the contributions made by the country’s different socioeconomic agents by setting up the Energy and Future Forum, a space for dialogue that is open to all the country’s economic sectors.

Throughout 2012 and 2013, various work meetings took place, at the group and individual levels, with companies from the construction sector; the colleges of professional engineers and architects; fuel and gas import companies; electricity distribution companies; business associations; and local and general administrations.

For FEDA, involving the country’s different socioeconomic agents was absolutely necessary, as this allowed us to consider the different economic sectors’ worries, to share problems, to obtain other points of view on the energy sector, and to collect ideas and proposed actions. It was an excellent medium to get to know the needs, preoccupations, and proposals of different actors within Andorran society.

During these work sessions, a distant horizon was established – in this case the year 2050 – in order to have a global view of the limitations of the predictable energy resources ceiling and to be able to direct the planned actions in the short and long term. In addition, this gave us the opportunity to consider the development of a legal approach to permit carrying out new activities in a regulated manner. Eventually, a new energy model was established that permits an increase in internal electrical production while diversifying primary sources and bringing new business to the country.

Integrating the White Paper’s objectives into a strategy for FEDA

Intending to turn this new proposed energy model into reality, FEDA has translated the White Paper’s objectives into three strategic axes for the company:

• Obtain the best possible energy cost so as to boost the country’s competitiveness.
• Produce more energy inside Andorra.
• Provide the citizens of Andorra with more services.

These strategic axes have developed into concrete projects at FEDA that are currently being carried out:

• Work in order to increase the high-voltage transport network capacity.
• Create energy-efficiency projects in buildings in order to reduce emissions and energy demand.
• Create electrical mobility projects.
• Set up and operate cogeneration plants for hot water supply to the town of Soldeu.
• Set up the cogeneration project that supplies hot water to la Comella, recovering wasted heat from the waste-treatment plant.
• Promote the use of the country’s natural renewable resources.

These last three points are linked to the current problem in terms of internal production sources. At present, the only internal sources of electrical production are the recovery of solid urban residues and the hydroelectric plant in Engolasters. Put together, this production represents 20 percent of the current total energy demand, with the other 80 percent being imported from neighboring countries France and Spain.

A large share of energy imports can break our competitive cost. We need to diversify and balance our “energy combination” by adding new sources.

From the 100 GWh that are currently produced, projected production in the year 2050 would be 500 GWh, covering approximately 27 percent of that year’s electricity demand.

The new model will therefore enable electricity production from five different energy sources, in contrast to the existing two sources.

In order to make this diversification a reality, in addition to the projects directly carried out by FEDA, the private sector will also be relied upon, as the investment required is around €1.125 billion, which cannot be covered by FEDA.

The electricity production sector is therefore being opened to private capital investors to carry out projects such as Aeolic farms, cogeneration plants, joint forest management, the use of biomass in hot water supply projects, etc.

Thanks to the direct participation of stakeholders, we were able to detect possible synergies and collaborations with the private sector to carry out sustainable development projects – not only from an energy perspective, but also from economic and social ones by identifying new activities such as heat networks, energy-efficiency services, and electrical mobility.