These two countries, Spain and Portugal, pulled off a masterstroke against their European partners. With the increase in the price of gas, the price of electricity being indexed to that of gas, prices began to climb seriously on the international markets. Spain and Portugal have presented a joint program in front of their European partners demanding a cap on the price of energy.
For our guest, the increase in the price of energy would weigh in Spain and Portugal, as much for industry, the economic sector and Spanish and Portuguese households, wages being lower in these two countries. This is why Portugal and Spain formed a common front at the European Council at the end of April, asking for lower energy costs.
Germany and the Netherlands had strongly opposed the Spanish-Portuguese request. At this epic European Council, the Spanish Prime Minister, Pedro Sanchez, threatened to leave the Council by slamming the door if no agreement was possible. Finally, Chancellor Scholz yielded considering that there is something specific in the Iberian Peninsula, that it imports very little energy.
This part of the European continent has very few connection links with the rest of Europe. Thus Spain asked that the price of gas be capped at 30 euros per megawatt/hour, the Council gave in but the megawatt/hour will be at 50 euros. It was made clear that this agreement was valid for 12 months.
Renewable energies are highly developed in Portugal, approximately 60% of the energy produced is produced through alternative energies. Due to its geography, Portugal has invested heavily in wind, solar and hydropower.
Spain also benefits from geographical conditions which allow it to opt for renewable energies, even if this country also produces nuclear energy.
The port of Sines in Portugal is a deep-water port and favorably placed on the sea route to the Americas. This is the reason why the Portuguese government will continue the work in 2016 in order to receive tankers, LNG carriers and container ships. A port which in the future will be able to compete with the ports of Antwerp and Rotterdam.