Spain Solar Power Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Spain Solar Power Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The market for solar power in Spain is expected to register a CAGR of more than 10% in the forecast period of 2020-2025. Huge investments by the major market players, supportive policies with different incentives and strategies by the government, and large-scale acceptance of solar at the residential level are some of the driving factors for the solar market of Spain. Increasing stress to achieve the European Union’s climate and renewable goals is pushing Spain to take initiatives to improve the solar market. The declining costs of renewable technologies are becoming competitive with fossil fuel sources, and additional subsidies on renewables are driving the renewable market further. On the other hand, even with the reduction in cost, the substantial initial investment for installation, limited grid infrastructure, and storage systems are some of the challenges ahead of Spain’s solar market.

Key Highlights

• Photovoltaic solar energy is becoming one of the significant sources of electricity, and its share is increasing in Spain. In 2018, PV solar held an increasing share of 4.5% in net installed power capacity. With a projected installation of more than 30 GW of photovoltaic solar panels by 2030, photovoltaic (PV) is going to drive the solar market significantly.
• With the introduction of National Energy and Climate Plan for 2021-2030, government is aiming to increase the renewable share to 42% by 2030. This is going to create a significant market opportunity for the solar market companies in the coming period.
• The Government of Spain took bold steps, like the abolishment of sun tax in 2018, the formation of Strategic Energy Technology Plan, Low Emission Strategy 2050, which are making the nation a global leader in the renewable market and reducing its carbon footprint at an astonishing rate.

Key Market TrendsSolar Photovoltaic (PV) Panels Driving the Solar Power Market

• Solar energy is one of the renewable sources that has tremendous unexplored potential. Where countries, like China, Germany, and India, are showing rapid growth from past years, the market in Spain has shown a CAGR of mere 0.25% in terms of installed capacity from 2014-2018, having a net capacity of 4.7 GW in 2018.
• The government of Spain is aiming to install 37 GW of photovoltaic solar projects by 2030 to increase renewable share by 74%. Projects with a capacity of 8000 MW were auctioned in 2017, which resulted in the installation of record-breaking 4000 MW of solar projects in 2019 alone, making net 8.7 GW of solar PV capacity by the end of 2019.
• With the successful installation of Núñez de Balboa project by the end of 2019, Spain has added a 500 MW project housing 1.4 million solar PV panels, which is one of the most significant solar projects in entire Europe and can supply power to 250,000 people.
• Iberdrola is planning to build a 590 MW capacity PV plant Francisco Pizarro, that will be commissioned in 2022. After completion, it will become Europe’s largest solar power plant.
• With large solar power projects lined up to achieve the aim of 31 GW by the end of 2030, the growth of the solar photovoltaic market in Spain is expected to witness a significant growth during the forecast period.

Government Policies and Targets to Drive the Market

• To meet Europe’s energy and climate targets by 2030, European Union State Members, including Spain, established National Energy and Climate Plans for the period 2021-2030, aiming for 21% reduction in greenhouse gases in comparison to 1990, 42% energy end-use from renewables, 70% electricity from renewables.
• In 2018, the Government of Spain scrapped the ‘Sun Tax,’ which was charging the Spanish homes fitted with solar panels with an additional tax of 7% to stay connected with the grid. With the abolishment of this tax, the domestic scale installation of solar panels is expected to increase in the upcoming period.
• In January 2020, Barcelona's local government made its own declaration and set a target to slash greenhouse gas emissions by 50% through 2030. For this large-scale deployment of photovoltaic solar panels in residential as well as in commercial building has been planned.
• The policies and steps that Spain’s government is going to take during the forecast period are one of the significant factors that will be governing the future of solar and renewable in Spain.

Competitive Landscape

The Spain solar power market is partially fragmented. Some of the major companies include Solaria Energia y Medio Ambiente SA, Acciona SA, Iberdrola SA, Cobra Instalaciones y Servicios SA, and Red Electrica Corporacion SA.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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