and the different technologies all have their peculiarities. Lack of space to store large volumes of water and the fact that the country only has small river basins means that hydropower is produced mainly in the spring. Solar power is generated mostly during the summer, spring, and autumn months, while wind power is obtained consistently throughout the year. Accordingly, to cover demand in winter – which is much higher due to Andorra's peculiarities – none of these renewable energy sources is sufficient. All this explains FEDA's commitment to the development of the district heating system. Here, the aim is to prevent the power grid from having to supply heating formerly provided by gas oil while also increasing power production through cogeneration projects that permit production at times of highest demand, combining heating and power generation. A northern model in southern Europe is possible Despite its location in southern Europe, Andorra’s climate is more like that of a northern country, especially in winter. Winter tourism, revolving around snow, skiing, and mountaineering, is a hugely important income source. European regions inspire FEDA’s management model and status as a multi-service business model with a similar climate. To prevent the long- term collapse of the power grid and avoid extra investment costs to cover peak demand, the company created FEDA Ecoterm. It has the dual mission of reducing the need for electric heating (channelling this demand into district heating systems) and increasing domestic electricity production at peak demand times. This initiative has also had a notable impact on diversifying Andorra’s energy risk and creating local jobs.
Low national production, mainly hydro power Despite a small share of recovered energy and the introduction of photovoltaic power, national electricity production depends essentially on hydropower, with little storage capacity. During the months when the snow is melting, the country's energy meets 50% of national demand, but in the winter months, this production covers less than 10% of consumption. The country's water resources are limited, so Andorra is developing photovoltaic and wind power projects to reduce substantial energy imports to cover demand in the winter months. Especially during spells of cold weather and in the evening and at night. Andorra has to acquire this energy in markets in neighboring countries when prices are high and when, in the future, restrictions on supply will be imposed due to the variability of renewable energy sources. The use of renewable energy is expected to grow continuously, gradually replacing power generation based on fossil fuels.
District heating: the necessary solution to Andorra’s energy transition strategy
After the 2008 crisis, FEDA began working to mitigate commodity risk in the purchase of energy. Accordingly, the company launchedmeasures to structure and cover purchases, structure and manage demand, and increase production.
However, the capacity for renewable energy production in Andorra is limited by the country's mountainous nature,
COVERAGE ON DEMAND
70.000 MWh
60.000 MWh
50.000 MWh
40.000 MWh
30.000 MWh
20.000 MWh
10.000 MWh
0 MWh
IMPORTED ELECTRICITY
NATIONAL HYDRAULIC PRODUCTION
SOLDEU COGENERATION PLANT
PRODUCTION OF THE WASTE RECOVERY CENTER (CTRASA)
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