Spain in the energy ecosystem. Leading renewables to infinity and beyond

The world is facing the great challenge of fighting climate change and is trying to implement solutions and carry out policies and measures that address this huge problem. To turn this situation around and move towards a decarbonised economy, governments around the world have placed renewable energies at the heart of all their energy policies.

2021 and 2022 were important years for the global energy transition, and since then the growth of renewables has been accelerating faster than ever. Spain has not been left behind in the race and is also strongly committed to renewable energies.

The Integrated National Energy and Climate Plan 2021-2030 (PNIEC) has laid the foundations for the promotion of renewable energies and has helped Spain achieve a leading position in the global energy ecosystem.

In this time, the energy efficiency of our country has improved by 39.6%, and renewable energies have reached 46% of the total energy production. Renewables generated 9,851 GWh in June, 6.4% more than in the same month of 2022, and it is expected that by 2030, in terms of electricity generation, the percentage of renewables will be 74% of the total energy production.

By that year, a total installed power capacity of 157 GW is predicted in the electricity sector, of which 50 GW will be wind power, 37 GW PV solar power, 27 GW combined gas cycles, 16 GW hydraulic power, 8 GW pumping, 7 GW thermoelectric solar energy and the other 3 GW nuclear.

Therefore, Spain is leading the world ranking, and according to the 61st edition of the RECAI (Renewable Energy Country Attractiveness Index) report prepared by EY, it is among the top eight most attractive countries to invest in the renewable energy sector.

In addition, Spain is positioned as one of the main European powers in renewables. It holds second place in Europe in terms of installed renewable capacity, thanks to the 5.9 GW of new renewable capacity achieved in 2022, and 59.2% of its total installed capacity comes from renewable sources.

Likewise, Spain is also ranked second in the PPA Index (Power Purchase Agreement). Our PPA market is a benchmark for the whole of Europe. Last year, 31 PPA contracts worth 3.2 GW of renewable capacity were signed, representing almost 40% of the total agreed across Europe at 8.4 GW.

At the same time, Spain aspires to lead the production of green hydrogen in the European Union. In December, the International Energy Agency said that Spain would represent half of all European growth in renewable capacity dedicated to hydrogen production.

Spain is leading the field in terms of infrastructure related to green hydrogen. For example, it already has 15.5 gigawatts of electrolyser capacity for green hydrogen production. Far beyond the amount set out in the Hydrogen Roadmap for 2030 which is set at 4 gigawatts.

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Sun and wind are driving Spanish wind and solar photovoltaic energy

Wind energy emerged as the biggest source of electricity production in our country, during the first six months of this year, with a share of 24.1%. Recently the School of Industrial Organisation (EOI) and the Wind Energy Business Association (PREPA) signed a strategic agreement with the aim of launching a new executive programme focused on offshore wind energy that seeks to expand this key type of technology in the energy transition.

Offshore wind power has emerged as a major potential renewable energy source that will play a key role in the future of sustainable energy. In Spain, there is a strong industrial sector focused on the development of offshore wind power for exporting, thanks to the leadership and experience acquired over more than 20 years of onshore wind farming.

With regard to solar energy, another of the major renewable energy sources, Spain also leads the world in growth, positioned first in terms of the percentage of solar energy in the electricity supply.

According to the International Energy Agency in its Snapshot of Global PV Markets report, Europe showed continued strong growth in 2022, with 39 GW of installed energy. Of this figure, the highest amount comes from Spain (8.1 GW), followed by Germany (7.5 GW), Poland (4.9 GW) and the Netherlands (3.9 GW).

In June, photovoltaic energy registered production of 3,838 GWh, 19.1% more than in June of the previous year, and for the first time, with a share of 17.9%, it has become the leading source of renewable generation in Spain.

Globally, only three countries have penetration rates of more than 17% in photovoltaic energy, Spain, Greece and Chile. And Spain once again tops the list.

As you can see, at present the expectations in terms of renewables in Spain are highly favourable. 2023 will be a significant year for the decarbonising transition. There is still a great deal to be done and many plans to be put in place, which will require large investments to continue boosting green energies.

But we are already heading in the right direction, and at the moment we are in an exceptional position. We must continue to promote and support renewable energies, increasing funding and subsidies to drive projects forwards, and we will maintain the position we have achieved so far.