Spain Renewable Energy Market | Size, Share, Trends and Forecast to 2028

Spain Renewable Energy Market | Size, Share, Trends and Forecast to 2028

The global energy landscape is going through a major shift towards renewable-based energy generation. This energy transition was possible after a decade of rapid technological advancement and a favorable regulatory environment. Additionally, factors such as decreasing costs of renewable energy sources and increasing competitiveness of battery energy storage technologies are expected to contribute to accelerated renewables deployment in the coming years. Furthermore, as the concern for climate change and support for environmental, sustainability and governance (ESG) considerations grow, the demand for clean and green power is expected to increase from almost all end-users.

The renewable energy market consists of the establishments primarily engaged in operating renewable electric power generation facilities. The power generation can be from a variety of sources, including solar energy, wind energy, small hydro, bioenergy, geothermal and marine. The electric energy produced in these establishments is provided to electric power transmission systems or to electric power distribution systems.

Spain is largely reliant on foreign sources of energy (73 percent), but its oil and gas sources are rather well-diversified, and the government has powerful emergency response structures in place in the event of a disruption.

Spain's final energy consumption is expanding across all sectors, with industry, residential, and services sectors all-consuming comparable quantities of electricity. Spain's power generation has significantly decarbonized in the last decade, as the share of output from fossil fuels has declined. Renewable energy is the most important source of electricity, followed by natural gas, nuclear energy, coal, and oil. Spain is now halfway to meeting the National Energy and Climate Plan's target of 74% renewable electricity generation by 2030.

Spain Renewable Energy Market Scenario

In 2021, the renewable energy sector accounted for 55.7% of electricity capacity in Spain. Among the renewable sources, solar accounted for 25.9%, and wind accounted for 44.7%.

Spain Wind Power

Wind power is a significant renewable energy source in Spain's energy mix. The installed capacity of wind energy registered an increase of 2.5% relative to 2020. The country's wind power sector comprises both onshore and offshore wind farm installations, with onshore wind forming the major portion of total installations with an installed capacity of 27492 MW, followed by offshore wind with 5 MW by the end of 2021.

(For more insights and analysis, consider our report on Spain Wind Energy Market)

Solar Energy in Spain

The installed capacity of solar photovoltaics in 2021 increased by 26.6% relative to 2020. In the past decade, each time that the amount of solar PV installed capacity doubled globally, the price of installing solar panels and modules declined by 34%.

(For more insights and analysis, consider our report on Spain Solar Energy Market)

The installed capacity of Solar Photovoltaic in Spain was 13648 MW, while for wind, it was 27497 MW.

In the last decade (2010-2020), globally, the electricity generation from all the sources has increased by 2.2%, from 21,570 terawatt-hours to 26,823 terawatt-hours. During the same period, the power generation from renewables increased by 15.25%. The regulatory support by various countries has played an essential role in the growth of the global renewable energy market. Renewable energy tax credits and subsidies, feed-in tariffs, and competitive auctions helped reduce costs and spur deployment.

Since 2010, the cost of solar photovoltaic electricity has fallen by 85%, and the costs of both onshore and offshore wind electricity have fallen by about 50%. Both these clean energy sources have reached a stage where they are now cost-competitive with fossil fuel electricity.

In fact, Renewables were the only energy source for which demand increased in 2020 despite the pandemic, while consumption of all other fuels declined. The share of renewables in the total energy mix grew from 3.53% in 2010 to 11.73% in 2020 and is expected to grow to about 30% by 2030.

Spain Energy Policy

In 2018 Spain announced an ambitious environmental policy that would see the country end its reliance on fossil fuels (natural gas, coal, etc.) and instead draw 74% of its electricity from renewables by 2030, gradually rising to 100% by 2050. Spain's ultimate goal is to entirely decarbonize its economy, reducing greenhouse gas emissions by 90% compared to 1990 levels.

The overall energy policy of Spain is based on the notion of "efficiency first." Spain's energy transition goals are primarily reliant on lowering consumption in all sectors. Spain has already begun to separate economic development from energy consumption.

Spain is making headway toward its 2030 ambitions, particularly in the electrical sector. Following a downturn in investments between 2013 and 2018 due to a lack of financial resources to promote renewables, investments resumed in 2019. Renewables (including nonrenewable waste) increased their contribution to the national electricity mix from 24 percent in 2009 to 55.7 percent in 2021.

Aside from the energy sector, the government intends to increase renewables self-consumption and distributed energy generation, as well as encourage the use of renewables in the industrial and heating sectors. It also intends to promote the development of advanced biofuels, renewable gases, and hydrogen.

The government has a four-pronged strategy to integrate more renewables into other sectors of the economy: 1) energy efficiency first; 2) renewables-based electricity; 3) storage; and 4) indirect electrification through renewable gases, namely green hydrogen. Renewable gas promotion is an important policy described in Spain's NECP, with applications anticipated in mobility, industry, seasonal storage, and synthetic fuels.

What do we cover in the Report?

Blackridge Research's Spain Renewable Energy Market report contains the installed capacity of renewable power generation sources (year-on-year) until 2028, the list of ongoing and upcoming renewable power generation projects such as solar photovoltaic farms, concentrated solar power projects, onshore wind, and offshore wind energy projects and the regulatory scenario within the renewable energy market of Spain.

Furthermore, the report will contain the drivers and restraints within Spain's Renewable Energy Market along with a meticulous evaluation of their impact in the near-, medium-, or longer term. Factors affecting renewable energy deployment include market conditions (e.g., cost, diversity, proximity to demand or transmission, and resource availability), policy decisions (e.g., tax credits, feed-in tariffs, and renewable portfolio standards), as well as country-specific regulations. Finally, the presentation would enable us to identify market opportunities and plan long-term growth.

The impact of the COVID-19 pandemic is an integral part of the report.

This product will be delivered within 3-5 business days.