The potential closure of two of Spain's largest coal plants depends upon the outcome of two 

governmental decrees that are in process, according to the CEO of Endesa, which operates 

the plants. 

"The company position is that it considers the two plants at Compostilla and Teruel [1.1 GW 

apiece] to be uneconomically viable under current market and regulatory conditions," Jose 

Bogas told analysts on a conference call Wednesday. 

Spain's government last week published a draft decree which will give it the power to prevent 

proposed  plant  closures  if it deems that this would result in a threat to security of supply or 

cause an "unfavorable effect on electricity prices." 

However, the country is also in the process of drafting its new Energy Transition and Climate 

Law, which aims to align Spanish policy to multilateral objectives. 

"For this reason we are waiting for the final details, not just of the closure decree but also the 

energy transition law before taking a decision [on the ultimate closure of the plants]," he said. 

While the company has committed to full decarbonization by 2050, it also acknowledges the 

country's  need to retain baseload plants in the short term to prevent a spike in prices, and 

retain supply margins. 

In either case, the company said that should any of its closure requests be denied, as a pu 

blic service obligation, it would expect to be compensated properly. 

Endesa  has  started  the  necessary  modifications  on  two of its Spanish plants to the new 

emissions directives, while a third plant, in the Balearic Islands, will be partially closed in ord

er to comply, although there is increasing regional pressure to completely close the plant. 

Its main competitor, Iberdrola, said earlier this month that it intends to close its two remaining 

Spanish plants, without providing a date. 

Indeed, considering the closures, under current projections, Endesa said Wednesday it sees 

Spain's reserve margin falling significantly amid the forecast closures.