The Council of Ministers at its meeting on 16 October 2015, on a proposal from the Minister for Industry, Energy and Tourism, adopted the Agreement on the Energy Planning Document. Development Plan for the Electric Power Transport Network 2015 -2020.

According to the provisions of the second paragraph of the said agreement, its publication is available in the "Official Gazette of the State" as an annex to this order.

Madrid, October 21, 2015. -Minister of Industry, Energy and Tourism, José Manuel Soria López.

ANNEX

Council of Ministers Agreement of 16 October 2015 approving the Energy Planning document. Electricity Transport Network Development Plan 2015-2020

I

Law 24/2013, of December 26, of the Electrical Sector, in its article 4 determines the procedure to be followed in the planning. As a general criterion, the planning of energy infrastructure has an indicative nature for the actors. As an exception, the planning of those infrastructures of particular relevance to ensure security of supply, as is the case for the transport of electricity, is binding on operators.

Article 4.2 of the aforementioned law states that electricity planning will be carried out by the Government, with the participation of the Autonomous Communities and Cities of Ceuta and Melilla, will require a report from the National Commission of the Markets and Competition and the processing of hearing. It shall be submitted to the Congress of Deputies, in accordance with the provisions of its Rules of Procedure, prior to its approval by the Government, and shall cover six-year periods.

On the other hand, and in accordance with Law 9/2006 of 28 April, assessing the effects of certain plans and programmes on the environment, which is transposed by Directive 2001 /42/EC on the assessment of the effects of the certain plans and programmes in the environment have been subject to the electrical planning of a process of strategic environmental assessment. This environmental assessment aims to guide planning from the outset towards environmental goals, integrating these with those of planning, to make it more sustainable.

The planning process began with the publication of the IET/2598/2012 Order of 29 November, which initiated the procedure for making proposals for the development of the electricity transmission network.

From that information the operator of the electrical system performed the analysis and relevant calculations aimed at making a first proposal containing the necessary infrastructures for adequate coverage of the demand planned in the planning period. The list of infrastructures contained in the initial proposal was sent to the different Autonomous Communities and the cities of Ceuta and Melilla so that they could make their respective claims and, once submitted, they were sent to the System operator to develop a new transport network development proposal.

From the new proposal presented by the System Operator, the Ministry of Industry, Energy and Tourism drafted the Transport Network Development Plan. The draft was submitted to the report of the National Commission on Markets and Competition, which issued it dated April 16, 2015.

In parallel, the Ministry of Energy and Tourism carried out the preliminary report required under Law 9/2006 of 28 April on the assessment of the effects of certain plans and programmes on the environment, since initiated prior to the entry into force of Law 21/2013, of 9 December, of environmental assessment. This report served to define the scope of the strategic environmental assessment by the Ministry of Agriculture, Food and Environment through its Reference Document adopted by Resolution of 29 April 2014. General Direction of Quality and Environmental Assessment and Natural Environment. The Environmental Sustainability Report, prepared from the guidelines contained in the Reference Document, was submitted to public information. Having analysed the allegations submitted to this report, the Ministry of Industry Energy and Tourism and the Ministry of Agriculture, Food and Environment jointly developed the Environmental Memory of the planning, which was adopted on 22 June 2015.

Finally, and as provided for in the current legislation, this planning document was submitted to the Congress of Deputies on September 29, 2015, after which the planning document which was raises the Council of Ministers for approval.

II

The planning document includes forecasts for future demand behaviour, the resources needed to meet it, the evolution of market conditions to ensure supply and the criteria for environmental protection.

The projections of the planning document state that final energy consumption in Spain, that is, the energy that finally comes to the consumer, will grow at an average annual rate of 0.9 percent between 2014 and 2020, reaching a total of 90,788 ktep in the last year of the period. This rate of growth of final energy is lower than that of primary energy, which is obtained directly from nature and has not been subjected to any conversion process, which will be 1 percent on an annual average.

This moderate growth in energy demand during the planning exercise corresponds to an average annual reduction of 1.6 percent in the final energy intensity in Spain (final energy consumption/GDP) in the forecast period, which is consistent with the energy efficiency and savings targets of Directive 27 /2012/EC on energy efficiency.

In relation to the supply structure, for which the planning is merely indicative, the forecasts of the document are that in the coming years the trend observed in the 2008-2016 planning will be maintained, which represents an important increase in the weight of renewable energy and natural gas, primarily to the detriment of oil.

With regard to the fulfilment of the 2020 renewable energy penetration targets set by the Renewable Energy Directive 2009 /28/EU, the planning document provides for the participation of energy sources. 20 percent renewable energy and 10 percent renewable energy consumption in the transport sector.

III

In terms of final electrical demand (in consumption), the planning document provides for an average annual growth of 2 percent for the 2014-2020 period, higher than the growth of final demand and primary demand.

This singular behavior of the electric demand is because many of the energy efficiency measures correspond with measures of electrification, being remarkable the gradual conversion of the transport to the electric vehicle or rail transport.

In terms of demand in central bars (in generation), the system operator's top scenario forecasts an electrical demand of 284.9 TWh in the peninsular system in 2020, which is 15.7 percent higher than that of the registered in 2013, with a power point of 49,000 MW.

The planning document also provides for a change in the structure of the generator park, with a fall in the weight of coal, petroleum products and natural gas and an increase in the weight of renewable energy, Agreement with the objectives on renewable energy for 2020. In this regard, the planning document foresees that electricity generation with renewable energy will reach 36.7 percent in 2020.

The projects envisaged in the planning horizon involve 1,517 km of new lines in 400 kV and 1,747 km in 220 kV. This is joined by the repotenation of 2,676 km of 400 kV and 3,512 km of 220 kV.

The estimated cost of the actions planned for 2015-2020 is EUR 4,554 million, of which EUR 143 million is to be counted from the ERDF, with due respect for the limit to the investment volume foreseen in the planning established in the current legal regulations (Royal Decree 1047/2013 of 27 December 2013).

For electrical systems, 2,806 M€ are to be invested in the peninsular system, 628 M€ are destined for the Balearic systems, 991 M€ to the Canary systems and 129 M€ to the integration of the ceuti system with the peninsular.

On the other hand, it should be noted as a novelty of this planning document, the inclusion of an Annex II with actions that are expected to be needed after 2020, so that they can move forward in their administrative procedures. without in any case being considered as planned infrastructures.

This annex includes, in particular, several interconnection projects with France necessary to achieve the objective of 10% of the electricity interconnection of the Member States of the European Union. These projects may be included on the horizon 2015-2020 after the current legislation (currently in the process) has been amended, so that their cost does not compute for the purpose of calculating the investment limit.

Finally, the new developments in the electricity transmission network planned for the period 2015-2020 are primarily responsive to the following needs:

Peninsular system:

• Development of the 400 kV and 220 kV network to increase security and security of supply and development of the 220 kV network to increase support for distribution networks.

• Power of new High-Speed Train rail axles from the 400 kV and 220 kV transport network.

• Development of the 400 kV and 220 kV networks that facilitate the integration of generation and, in particular, generation of renewable sources.

Balting systems:

• Interconnections between systems that help increase security of supply and reduce generation costs.

• Development of the network of 66 kV and 220 kV in Mallorca and 132 kV in Ibiza to ensure security of supply.

Canarian systems:

• Interconnections between systems to increase security of supply and reduce generation costs.

• Network actuations for the integration of planned wind and photovoltaic installations.

• New axis of 132 kV in Lanzarote-Fuerteventura and reinforcement of the 220 kV networks in Gran Canaria and Tenerife to ensure the supply of the main areas of demand.

ceuti System:

• Integration with the peninsular system through an underwater interconnection.

According to article 4.2 of Law 24/2013, of December 26, of the Electrical Sector, it is up to the Government to approve the electrical planning.

In view of the above, the Council of Ministers, at its meeting on 16 October 2015, agrees:

First.

Approve the Energy Planning document. Development Plan for the Electric Power Transport Network 2015 -2020, which is inserted below.

Second.

This Agreement shall be published in the "Official Gazette of the State", with the exception of the "Energy Planning" document. Development Plan of the Electric Power Transport Network 2015 -2020, which will be published on the website of the Ministry of Industry, Energy and Tourism, at the following address:

http://www.minetur.gob.es/energia/planificacion/Planificacionelectricidadygas/desarrollo2015-2020/Paginas/desarrollo.aspx

Third.

The planning document to be approved will be subject to the revisions and modifications provided for in Article 4.4 of Law 24/2013 of 26 December of the Electrical Sector.