US embassy cable - 05MADRID1803

UNCLAS MADRID 001803 
 
SIPDIS 
 
SENSITIVE 
 
DEPARTMENT FOR OES/EGC, EB/ESC/IEC, AND EUR/WE; NRC FOR 
INTERNATIONAL PROGRAMS: ROSALES-BUSH; DOE FOR INTERNATIONAL 
PROGRAMS: BHAT 
 
E.O. 12958: N/A 
TAGS: ENRG, SP 
SUBJECT: SPAIN:  SOCIALIST DEPUTY'S VIEWS ON ENERGY ISSUES 
 
REF: A. MADRID 1496 
 
     B. 04 MADRID 4241 
 
1.  (SBU)  ESTHOFF met with Socialist Party (PSOE) 
Congresswoman and Industry Commission spokesperson Arantza 
Mendizabal Gorostiaga May 11 to discuss nuclear and renewable 
energy-related issues.  Mendizabal made several interesting 
comments that tended to confirm our previous reporting 
(reftels) on the future of nuclear energy in Spain: 
 
--  Prime Minister Zapatero and the PSOE will keep their 
campaign promise and will take no actions during the current 
Congress (through 2008) to reconsider Spain's de facto 
moratorium on the construction of new nuclear power reactors. 
 
--  That said, the Prime Minister and the PSOE understand 
that the strong policy impetus to meet Kyoto Protocol 
commitments will complicate any future efforts to meet the 
PSOE commitment to gradually phase out Spain's nine existing 
nuclear power reactors. 
 
--  No hard decision regarding the possible closure of an 
existing nuclear power facility will be taken before 2008 
(after the next national elections). 
 
--  The Spanish people are more like the Germans than the 
French in their general distaste for nuclear power. 
 
--  To keep all options open, the PSOE plans major efforts 
during this Congress (i.e., through 2008) to establish a 
central depository for nuclear waste.  (Note:  at the moment, 
each of Spain's nuclear facilities stores its own waste.  End 
Note.)  Dealing with the nuclear waste issue is a 
prerequisite for any possible PSOE attempt to back away from 
its anti-nuclear policy. 
 
--  The recent nuclear accident at the Vandellos II facility 
(Ref A) presents the PSOE with an interesting set of 
challenges.  The government must take a hard line to 
demonstrate to the public that it takes safety issues 
seriously and will thus have to consider reforming Spain's 
Nuclear Security Council (CSN - Spain's NRC equivalent).  But 
it must do so in a way that does not fuel anti-nuclear 
sentiment. 
 
--  Reconsidering the PSOE's anti-nuclear stance makes 
obvious sense from an economic and energy security sense, but 
politically it would be enormously difficult for the PSOE to 
agree to the construction of new nuclear power reactors in 
Spain. 
 
--  Renewable energy sources are "nice" but offer no short, 
medium or long-term solution for Spain's dependence on 
imported energy (i.e., oil and natural gas). 
 
--  Spain's energy problems are aggravated by an almost out 
of control energy demand growth rate.  Reducing the growth 
rate is not easy.  Raising prices would be inflationary and 
would violate PSOE campaign promises. 
 
--  Congress' Industry Commission (which overseas 
energy-related issues) plans to implement minor energy market 
reforms to make this market more transparent and "perfect." 
The current "confused" nature of electricity grid regulation 
complicates wider efforts to curb the excessive electricity 
consumption growth rate. 
 
2.  (SBU)  COMMENT:  Mendizabal, a Basque who is in her fifth 
consecutive term in Congress, struck us as pragmatic and 
realistic.  She is no anti-nuclear campaigner, but realizes 
that moving the PSOE away from its anti-nuclear stance would 
be very difficult.  Her comments on the need for energy 
market reforms suggest that she understands that the best way 
forward is through market liberalization.  Mendizabal 
appeared well aware of the significant and mounting 
energy-related challenges facing Spain, but did not see any 
politically realistic way to reduce Spain's dependence on 
imported petroleum and natural gas. 
MANZANARES