GREEN LIGHT FOR POWER LINK TO THE MAINLAND

AN ELECTRIC cable connection to link the Balearics with the mainland power grid, as well as a natural gas pipeline between the archipelago and the Peninsula, were the subject of an agreement between the central government Minister for Economy, Rodrigo Rato, and the President of the Balearics, Jaume Matas. These two works, of pivotal importance to the infrastructure of the Islands, will cost between 500 and 600 million euros.
Rato broke the news at a Press briefing following a meeting with Matas which was also attended by the President of the Council of Majorca, María Antonia Munar. The Balearic President referred to the agreement as being “historic” for his Community. He explained that the Islands will be connected to the same power network as the Peninsula under the same conditions as other regions of Spain. The electric cable will join Majorca with Tarragona and it is planned for another to be put in place that will link Majorca with Ibiza. The natural gas pipeline will run from Denia (Alicante) to a point on the Islands yet to be determined, said Rato. The Minister for Economy gave assurances that these two major works of infrastructure are “priorities” for the Spanish Government and will be given “as much impetus as possible”. He added that this coming Autumn, the project will be incorporated into Spain's national energy distribution plan which will makes provisions for power supply throughout the country up until the year 2011, although he stopped short at giving an exact date. When this dual power supply has been established, the Balearics will be fully connected to the national power grid and will be able to use the supply of natural gas for electricity generation. This means there will be alternative energy supplies providing better competition and better security. “In an uncertain world, a reliable power supply is crucial” Rato pointed out. The natural gas pipeline will make the use of gas at electricity plants on Majorca a reality. The conversion of the gas supply to electricity will be made in collaboration with technically competent industrial organizations, said the Minister. This augured well for the Balearics, he added, because in the next few years, the Islands will “have a guaranteed power supply from more than one source”. By means of the connecting supply cable, consumers will be able to receive electricity directly from the national grid, as part of open market (as opposed to monopolized) supply. Furthermore, the Balearic system will be integrated not only with that of the Spanish mainland but also of the Iberian Peninsula. Portugal has therefore been invited to join discussions, declared Rato. He explained that these initiatives will be eligible for financial support from the European Union which will mean between 80 and 100 percent funding for the viability studies and about 20 percent for the total cost of the project. He stressed, however, that it is a little too soon to be specific about the contribution from the European Community. At Matas's request, Rato highlighted the fact that the agreement is being written into the legal statutes of the Special Balearics' Regime (REB) which “has orchestrated highly desirable financial and political development to the benefit of the Islands' inhabitants”. With regard to power levels, it is calculated that the cable connection will provide 25 percent of the current Islands' demand which represents “a very considerable increase in availability”. The Minister concluded that “today has witnessed a very important stage in the future of energy supply in the Balearics”. He pointed out that the agreement has been reached after negotiations which had, in fact, been initiated during the time in power of the previous Balearic government. Rato cofirmed that there had been “constant communication” between the central government ministry and the Islands. Matas confirmed that by means of the agreement ratified yesterday, “we are definitely going to break the traditional power of monopoly in energy supply in the Balearics” and that links with the mainland of Spain will “put an end to the Islands' isolation”. From now on, the Balearics will enjoy the same conditions as the rest of Spain. The objective is to guarantee the supply of natural gas for the production of electricity, and as a complementary measure, the installation of an electric cable connection, firstly on an inter-island basis and secondly, between the islands and the Peninsula, explained Matas. Regarding the power cuts that affected the whole of the island of Majorca and part of Minorca at the beginning of last week, Matas reported that in response to the effects of the power failure, a special Commission had been set up, information channels had been opened with the power company Gesa, and a special office had been set up to deal with claims resulting from the electricity cuts. He believed that it was important to trace the line of responsibility for the energy blackout in order to avoid such an event happening in the future. When the new gas and electric connections to the mainland are up and running, “we can be guaranteed protection against a repeat performance”, he assured. María Antonia Munar supported the Balearic President by saying “today's agreement is of key importance” because “we have thereby arrived at a solution”, ensuring the future of power supply in the Balearics.