Andorra Completes €2.4M District Heating Upgrade Boosting Waste Energy by 25%

FEDA, Andorra's public energy company, has completed the integration of district heating networks in Andorra la Vella and Escaldes-Engordany, a €2.4 million project that boosts annual energy production from waste incineration by 25%, from 27 to 36 gigawatt hours, and serves more than 110 buildings.

The rollout coincided with warnings of likely district heating tariff increases at the end of March, during the quarterly price review. Director General Sílvia Calvó linked the hikes to surging Brent crude oil and natural gas prices, driven by the Middle East conflict and the Strait of Hormuz closure. "We're monitoring the situation, which you know is complicated. It all depends on the war's duration," she told reporters at Thursday's presentation, alongside State Secretary for Energy Transition, Transport and Mobility David Forné and FEDA Ecoterm manager Alberto Manzano. She added that calculations are in progress, with tariffs tied to Brent but including a minimum coverage level. Current rates remain low after favourable market conditions, but clients on the liquefied gas-powered Soldeu network will also see rises.

Electricity prices, by contrast, are expected to stay stable. Calvó stressed that the conflict's impact on Andorra's energy system will be less severe than the 2022 Russia-Ukraine war, when high market prices and weaker coverage deals left the country exposed. Better purchasing agreements, lower baselines, advances in France's nuclear output, and Spain's renewables now offer greater resilience. "We have a more robust FEDA and can face the coming months with more tranquillity," she said.

Manzano described the interconnection as "basic and key" for network growth, maximising the Waste Valorisation Centre while allowing organic expansion. The project, which began last May and finished ahead of schedule, involved complex piping for heat flow between networks, with testing completed last week. Forné hailed it as central to the government's energy strategy and the 2018 Litec law, reducing fossil fuel reliance and emissions for decades.

Calvó noted that electric heating in connected buildings would have spiked electricity demand by 7%. FEDA is now scouting new connections in both parishes. The review will confirm any tariff shifts based on oil and gas trends.