New energy utility launches in Galicia

Resources of Galicia (RDG) has been launched as a mixed resources energy utility by the government of Galicia and 33 shareholding companies.

The new utility, which is majority owned by the regional government (Xunta de Galicia) with 30% of the shares, is aimed to draw on the natural resources of this region of northwest Spain for a range of energy generating opportunities.

Three main areas of activity are envisaged, i.e. energy production from renewable sources, mining rights, concessions and exploitation projects, and those that require water concessions for uses including agriculture and aquaculture and for industrial uses for the production of electricity and consumer goods and extractive industries.

“With this pioneering initiative, Resources of Galicia seeks, without losing sight of the profitability horizon, to maximise the impact on the territory of the value generated by natural resources, the competitiveness of energy prices and the decarbonisation of the economy,” a statement reads.

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“In short, it will seek to ensure that energy development is equitable and results in the progress of Galicia and its economic fabric; in other words, that the benefits of the use of natural resources remain in the territory.”

Resources of Galicia is anticipated to increase the energy autonomy of Galicia in particular and of Europe in general and with the use of its natural resources, should enable the delivery of electricity at competitive prices in the areas closest to the energy sources.

It also is expected to stimulate self-consumption and to bring benefits to the consumers in the rural areas.

To achieve these objectives, RDG will focus on measures such as seeking social and local community support for projects, facilitating a market with equal conditions for all participants regardless of their business volume and acting as a catalyst for the implementation of the future Natural Resources Law.

The 33 shareholding companies are reported to represent the economic fabric of Galicia, supporting more than 21,000 direct jobs and contributing more than €10.5 billion (US$11.5 billion) per year to its GDP.