Page 85 - economic report 2021

invaluable. Added to this are the contributions from the Waste Recovery Plant, Soldeu’s combined
heat and power plant, the mini hydroelectric plants and solar panels. The other 80% of the energy
demand in Andorra is fed by imports from France (38% of the total) and Spain (41%).

The FEDA distribution area has a total of 61 solar installations connected to the network after
13 new installations for self-consumption were added in 2021, representing an increase of 27%
since 2020. Remember that in 2018, there were only 27 solar installations. Moreover, in 2021,
the mini hydroelectric power plant at Aixovall began to operate, promoted by the renewable
electricity company PERSA, formed by Mútua Elèctrica de Sant Julià de Lòria and Nord Andorrà,
with a capacity to generate 2.7 kWh per year, the equivalent of consumption for 570 houses.
This energy mix means that 63% of energy consumed in Andorra in 2021 was renewable, a much
higher percentage than in 2019, when it was only 36%, according to FEDA.

Andorra’s total energy demand (also in 110 kV) increased 1.8%, so it corrected a small part
of the decline in 2020 (-9.7%). By sectors and according to the relative data only from FEDA,
electricity consumption increased, especially in the sectors that have grown most, such as
construction (12.5%), industry (22.2%), distribution (10.7%) and public administration (11.7%).
Energy consumption also increased in hotels and catering (8.8%) and financial services (2.7%),
but at a slower rate. In contrast, consumption fell for households (-2.3%) and ski resorts (-12.3%).
As a result of the combination of a slight increase in demand and a major decrease in production,
energy imports increased 13.6% in 2021 to represent 80% of total demand.

Imports of fuels (in litres) also increased 9.6%, which only partially offset the steep decline in
2020 (-23.3%). The increase in 2021 was the result of restored movement both domestically and
from foreign visitors. Specifically, imports of diesel for transport increased 8.9%; unleaded petrol 83
28.4%, and heating oil 1.7%.

The recovery of the industry sector continued to progress gradually over 2021, reaching fairly
normal levels of activity. According to the Chamber’s business climate survey, industrial businesses
ended 2021 with a year-on-year average increase in turnover of 10.9%, compared with the 21%
decrease in 2020. However, note that this more favourable trend did not result in a significant
improvement in the indexes of recruitment in the sector.

Business act vity in industry was On the other hand, the good recovery rate in

posit ve in the second half of 2021, activity was reflected in the industrial production
af er three negat ve quarters. indicator, which managed to gradually normalise
activity towards pre-crisis levels. This upward

Chart 10.2 The Andorran economy: developments in the main sectors | X. Industry
BUSINESS ACTIVITY - INDUSTRY SECTOR

Balance: Dif erence between opposing responses (posit ve and negat ve), as a percentage.
Source: Chamber of Commerce, Industry and Services of Andorra.