Spain Rejects Andorra's €20M Cap on Electricity Line Investment

Spain rejected Andorra's request to cap FEDA's investment in a new 220kV electricity interconnection line at €20 million, leaving the matter for negotiation in a separate private agreement between FEDA and Red Eléctrica Española (REE).

The Andorran government has submitted the "Convention between the Principality of Andorra and the Kingdom of Spain for the Implementation of a 220kV Electrical Interconnection" to the Consell General, along with supporting documents that reveal the sticking point. Article 3 of the convention states that Andorra, through FEDA, will fully cover the investment costs in Spanish territory for the described works, including any unforeseen additional expenses arising from the project's launch. No total cost is specified in the convention itself; that detail will appear in the forthcoming private agreement between FEDA and REE, which must be signed before construction begins.

FEDA, led by Albert Moles, pushed for a clause limiting its exposure to €20 million to guard against potential overruns. The company described the line as essential for securing electricity supply in case of failure in the French connection, calling it Andorra's best alternative. However, FEDA noted that the line also serves as a route for Spanish firms to sell power to Andorra, generating revenue for Spain while Andorra already pays to use the network for energy purchases.

Spain declined the cap, insisting that cost-sharing issues be addressed solely in the private deal. REE will integrate the infrastructure into its assets as a third-party funded facility and collect fees for its operation and maintenance, per Article 4 of the convention.

Project estimates have risen sharply since inception—from an initial €14.5 million—and Spanish network development plans reference a new 15.5km line, a substation, modifications to existing lines from Llavorsí and Cercs to Adrall, and the dismantling of the current line. These describe a technically complex undertaking with high potential overruns, for which FEDA would bear the full cost, including direct, indirect, and financial expenses. The plans cite €21 million, though not finalized, with no indication REE would accept a spending limit.