The Junta of Andalusia saved 130 million euros on its electricity bill during the four-year validity of the previous contract compared to the wholesale market price despite the increase in electricity costs that happened, thanks to the centralized contracting of your electricity supply through the framework agreement number. With this, the Andalusian government intends to achieve greater efficiency in the use of public resources.
It was promoted by the Ministers of Economy, Treasury, and European Financing, Places called Carolina in Spain and Industry, Energy, and Mines, Jorge Paradela, during the presentation of the details of the award of the new centralized contract, which maintains the condition established for the first time during the previous legislature, that 100% of the electricity used by the regional administration has a green origin, together with the institutional delegate of Iberdrola, Antonio Fernandez.
The Board awards Iberdrola the new framework agreement on the central contracting of electrical energy in more than 5,000 supply points under its administration (hospitals, secondary education institutions, administrative offices, nursing homes, sports facilities, etc.), with consumption in the environment of 1,000-gigawatt hours of energy per year, the equivalent of the electricity demand of the cities of Almería and Jaén throughout the year.
The Minister of Economy, Finance, and European Funds, Carolina España, emphasized that “for the Andalusian Government, the effectiveness and efficiency of spending are very important. We want to spend only what is necessary, always focusing on saving money for Andalusians, like this 130 million saved in 4 years”, he added that the new Framework Agreement will allow “greater agility and simplification of processes” while emphasizing the link of joint work between the two ministries.
For his part, the Minister of Industry, Energy, and Mines, Jorge Paradela, emphasized that the contract, where the Andalusian Government wants to set an example and implement a sustainable energy policy, considered “not only the quantitative but the qualitative.” In this way, in addition to the given energy that is 100% renewable and the price certainty, factors such as the commitment to self-consumption in the Board’s headquarters are examined, in line with the ambitious energy-saving plan of the autonomous administration, which aims to save consumption by 12% in 2026 based on data from 2021″.
The contract was put to tender by the Ministry of Economy, Finance, and European Funds and will be managed by the Ministry of Industry, Energy, and Mines through the Andalusian Energy Agency, responsible for managing the Energy Network of the Government of Andalusia, REDEJA. It has an initial validity period of 25 months with the possibility of two extensions to complete a maximum period of four years, and that will be implemented on October 31.
One of the main innovations of this new tender is to give priority to the offers that include the investment in the self-consumption facility of the regional administration headquarters, which also regulates the price that the Andalusian government will receive for the energy produced by the self-consumption of your property in the form of a bill discount, and since it is more than your needs, it ends up being discharged into the network, known as an overpayment.
In this case, the successful bidder of the contract offered 345,6 kW for its consumption to be installed in the different headquarters of the Junta de Andalucía, which will be able to pay the invoice in the following three months (instead of one as established in the regulations), with the surpluses poured into the network. This means that if a point of supply, for example, an institute, is closed in the summer, it will be able to deduct from the September bill the surpluses made by the loss of consumption in July and August.
It is estimated that the annual bill of the Andalusian government for the purchase of electricity may be around 220 million euros per year. Thanks to the centralized 100% renewable energy model and to avoid fluctuations in the short and medium term of the electricity market and the ups and downs obtained from geopolitical situations or climate difficulties, within the savings policy of the autonomous government is a fixed price associated with the futures market (OMIP) with an annual review starting in 2024.
The Board will maintain a system that will reduce the volatility of the price of electricity paid by more than 100 entities included in the Energy Network of the Board Administration (REDEJA) and managed by the Andalusian Energy Agency, attached to the Ministry of Industry, Energy, and Mines.
Also, continue to work on rationalization and simplification of procurement driven by the General Director of Contracting in the Ministry of Economy, Finance, and European Funds, more than 100 contracts based on the 2023-2027 Framework Agreement in each of the ministries, the administrative, special regime, and public business agencies, the commercial companies and foundations of the Andalusian public sector, the consortia and other entities, as well as the volunteers who are included in REDEJA, which is the majority of public universities in Andalusia.
This will make it easier to manage supply contracting as well as to resolve incidents for different centers more directly. In addition, billing will be done through the supply point to make the process more efficient.
It is also necessary to have detailed knowledge of the consumption of buildings and public facilities, which will make it easier to make energy improvements that will result in greater cost savings and energy efficiency and the use of renewables, as established in the Plan for Energy Savings of the Administration of the Government of Andalusia until 2026.