13 May 2003 - Growth in the Spanish power market is set to slow from it recent fast pace although demand for gas is expected to remain high, according to an official from the economy ministry said on Monday.

Carmen Becerril, head of trading and energy markets at the ministry said that Spanish power growth will drop to an average 3.75 per cent a year until 2011, compared with six per cent previously, while gas demand growth will be between nine and 12 per cent.

"(Gas demand growth) is higher than in neighbouring countries because of an increase in the number of consumers and the rising use of gas in power generation," Becerril told a conference about the Spanish gas and power market. Spain uses about 20 billion cubic metres of gas a year, about a quarter of UK consumption.

It is expected that investment in upgrading Spain's gas and power transmission systems will reach €8bn ($9.24bn) over the next eight years, according to the energy regulator CNE. There is expected to be considerable investment in the infrastructure for LNG import and gasification.

CNE predicted that an additional 14 800 MW of gas-fired power stations and 15 000 MW of renewable schemes need to be built by 2011 if Spain is to limit greenhouse gas emissions. This will require an investment of 18.5bn, of which 12bn will be spent on renewables and 6.5bn on gas-fired schemes.