"Coal production in Spain reached a peak in 1984 at 40 Mt per annum. As of 2018, coal production had fallen to 2.4 Mt per annum.
In 1984, around 54,000 people worked in coal mining. However, coal mining employment had already been in decline for over 20 years prior to the 1984 production peak. By 2018, employment had declined to about 1,200 people.
In terms of domestic energy supply, coal accounted for 21% of Spain's total primary energy supply in 1990. This fell to 3% by 2020. For the country's power supply, coal's share fell from 40% in 1990 to 2% in 2020."
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The coal reorganisation plan is structured around five areas:
1. Reduce production cost of domestic coal through reduction in state aid
2. Improve underground mining productivity by 15%
3. Consolidate open-pit mining capacity to 600 kt
4. Improve mining safety
5. Promote industrial transition in areas affected by mining closures. (González Rabanal 2005).
Total coal production down 12% 1990-1993.
Total coal production down 12% from 1990 levels.
Coal-fired power generation increased slightly over period (61 to 63 TWh). Share remained around 40% of total generation.
Coal industry modernisation plan:
State aid continued on condition of increased productivity. Overall, subsidies would see a reduction of at least 6.3% in this period.
Aid for uncompetitive mines as they reduced production.
The creation of an economic fund to finance reindustrialisation activities in areas which saw reduced mining activity (González Rabanal 2005).
State aid for mines would be limited to no more than 5% of revenue from electricity billing, while aid for economic reactivation of mining regions would be limited to no more than 0.5% of the same.
State aid for mining regions was aimed at alternative job creation, supporting business infrastructure, mitigating problems of social marginalisation, and the environmental, urban, and cultural transformation of affected communities (Tribunal de Cuentas 2020).
Total coal production down 17% 1993-1997.
Total coal production down 26% from 1990 levels.
Coal-fired power generation stayed relatively flat (around 63 TWh). Share dropped from 40% to 34% of total generation.
Coal mining plan: Spain’s Ministry of Industry and Energy and trade union organisations representing coal miners signed a plan to restructure the industry and ensure that, as coal production decreased, the government would provide aid to support early retirement of miners and ensure alternative economic development of affected regions (Tribunal de Cuentas 2020; González Rabanal 2005; Del Río 2017).
Support was categorised into three types:
1. Support for business development leading to direct employment creation (15% of total funds allocated)
2. Support for retraining of affected workers (7.5% of funds allocated)
3. Provision of infrastructure (77.5% of funds allocated) (Del Río 2017)
Total coal production down 26% 1997-2005.
Total coal production down 46% from 1990 levels.
Contribution from public subsidies to total coal price (euro cent per therm) paid by domestic power plants to domestic coal producers reduced from 48% to 42% over implementation period.
Coal-fired power generation increased over period (63 to 81 TWh). Share dropped from around 33% to 28% of total generation.
Coal strategic reserves national plan: largely a continuation of the previous plan with regards to areas of support. However, the plan gave greater priority to supporting the reactivation of regions affected by mine closures, noting that the previous plan had not done so sufficiently (Del Río 2017).
The plan is noteworthy for being the first to provide support for the adaptation of the coal mining industry to environmental requirements. This included financing of research and development of cleaner combustion and carbon capture technologies, but also the rehabilitation of local environments around closed mines (MINETUR 2006). Signed by the government, labour unions (UGT and CC.OO), and industry association (CARBUNIÓN) on 28 March 2006.
Total coal production down 68% 2005-2012.
Total coal production down 83% from 1990 levels.
Contribution from public subsidies to total coal price (euro cent per therm) paid by domestic power plants to domestic coal producers reduced from 44% to 29% over implementation period.
Coal-fired power generation decreased over period (81 to 56 TWh). Share dropped from 28% to 19% of total generation.
Coal activity framework: the plan sought to facilitate an orderly phase out of uncompetitive coal mines while supporting competitive mines to the extent that they provide sufficient domestic supply to ensure secure and reliable electricity production. The plan highlighted the need for this insurance given the increasing penetration of intermittent renewables into the generation mix.
As with previous plans, support from the government fell into three categories:
1. Support for coal production, with the condition that coal produced is sold to domestic power plants. The plan sought to end support for open pit mines by 2015 and reduce support for underground mines through the period.
2. Support for workers, including compensation for voluntary redundancy, workers affected by illness (silicosis), early retirement packages, and training support. In addition, the plan provides support for rehabilitation of towns where mines have closed and envisions that these activities will provide employment opportunities.
3. Support for the reactivation of former coal mining areas and the development of alternative industries therein. Additionally, support was provided for research and development activities around cleaner combustion and carbon storage technologies.
Signed by the government, labour unions (CC.OO and USO), and the industry association (CARBUNIÓN) on 1 October 2013.
Coal fired power generation is 2% of total generation as of 2021.
Coal mining unions played a significant role in the development of the plan, thereby creating buy-in for its implementation.
Employment in coal mining continued its decline over the implementation period. There was a corresponding demographic shift in traditional coal mining towns, with significant decreases in population and an increase in average age of population.