The demand for electricity in the industry breaks the negative trend: first signs of electrification progress?

The increase in the industrial consumption of electricity could reflect the first signs of electrification progress in Spain. Industrial electricity demand rebounded in the second quarter of the year, specifically registering a 2% rise compared to the same period last year, marking the first positive data since the third quarter of 2021.

This is revealed by the analysis conducted by Opina 360 based on data from the Red Eléctrica Index (IRE), which measures the demand of medium and large consumers, once calendar differences and temperature variations are accounted for.

The industrial sector’s pull has also made it possible for the first increase in overall demand since the end of 2021, a 0.7% rise, in contrast to the services and other sectors, which presented negative rates (-1.6% and -1.8%, respectively).

Within the industry, the group that most boosted demand is intermediate goods, with a year-on-year increase of 3%, mainly driven by the petroleum refining industry (26.8%) and metallurgy (8.4%). It is followed by consumer goods, with a growth of 0.5%, highlighted by increases in the food industry (2.1%) and furniture manufacturing (5.1%). On the contrary, the capital goods group experienced a decline of 1.4%, due to the drag from vehicle manufacturing (-2.8%), machinery (-6.9%), and repair and installation (-18.7%).

This growth in demand is good news for both the industrial and energy sectors, as it shows an increase in the dynamism of economic activity, according to Foro Industria y Energía.

As was evident in the last Foro Sella, boosting industrial electricity demand is key to the penetration of renewables in the energy mix, and this is where we should focus our efforts to achieve a competitive and sustainable energy management in the industry.