Spain Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Report Covers Spanish Electricity Market Analysis and it is Segmented by Power Generation Source (Thermal, Hydroelectric, Nuclear, Renewable), and Power Transmission & Distribution

Spain Electricity Market Size

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Spain Power Market Overview
Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR 12.89 %
Market Concentration Medium

Major Players

Spain Power Market Major Players

*Disclaimer: Major Players sorted in no particular order


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Spain Electricity Market Analysis

Spain power market is estimated to be at 120 GW by the end of this year and is projected to reach 220 GW in the next five years, registering a CAGR of 12.89% during the forecast period.

  • Over the medium term, favorable government policies and increasing penetration of renewable energy in power generation will likely support Spain's Power Market growth during the forecast period.
  • On the other hand, factors such as high initial capital investments for power-generating equipment are likely to hinder market growth during the study period.
  • Nevertheless, an increase in the adoption of renewable energy sources coupled with energy storage systems is expected to create several opportunities for the market in the future.

Spain Electricity Market Trends

Renewable Expected to be a Significant Sector

  • Spain is a quickly growing country adopting renewable energy sources like solar and wind energy. In Spain, renewable energy sources are primarily solar, wind, hydropower, and bioenergy power generation sources.
  • According to International Renewable Energy Agency, in 2022, Spain's total installed renewable energy capacity was around 67.9 GW 2022. It increased by over 9.5% compared to the previous year's installed capacity.
  • Furthermore, the government of Spain contains an ambitious renewable energy installation target. In July 2022, the government announced its plans to install more than 160 GW of renewable energy sources by 2030. It will comprise 74% of electricity generation through renewable energy sources and 100% through 2050.
  • Due to the ambitious renewable energy targets, various companies entered the renewable energy market in the country. For instance, in May 2023, Siemens Gamesa announced that it had signed agreements with renewable energy company Repsol. It is to deliver its 40 SG 5.0-145 onshore wind turbine products for 6 wind farms in Palencia in, Spain, with a total wind generating capacity of 200 MW.
  • Furthermore, the Government of Spain announced plans for decommissioning coal power plants by 2025, oil power plants by 2030, and nuclear power plants by the end of 2035. With the decommissioning of these energy sources, the demand for renewable energy is expected to increase significantly to make up for the decommissioned power-generating sources while matching the increasing demand for electricity in the country.
  • Therefore, according to the above points, renewable energy sources will likely dominate the Spain power market during the forecasted period.
Spain Power Market- Electricity Generation

Supportive Government Policies to Drive the Market

  • The supportive government policies are expected to drive the power market for Spain during the forecasted period. The country's electricity demand constantly rose due to the increasing population and infrastructure development activities.
  • According to the Red Electrica de Espana, Spain's electricity transmission company, the country's electricity production capacity in 2022 increased by more than 6% compared to 2021. In 2022 the total power production was 276.31 Terra-Watthours. It signifies the increasing power demand in the country.
  • The country's power generating capacity derives most power through hydraulic and combined cycle power generating sources. However, the renewable energy capacity increased significantly in recent years, and in 2022, they comprised almost 43% of the total electricity generation in the country.
  • Additionally, in April 2023, the country announced they are preparing a proposal to present to the European Commission. It will look to reform its electricity market, which is looking to decrease the electricity prices for the consumer. It is at an all-time high in 2022 due to the Russia-Ukraine conflict, which affected the gas supply throughout Europe.
  • The country is also working on further expanding its electricity generation capacity to gain energy independence from importing electricity through neighboring countries and importing natural gas for electricity generation.
  • For instance, in March 2023, the Spanish power ministry, the Ministry of Energy Transition and Autonomous Communities, announced the approval of its 3 GWp solar energy project proposed by the French energy company TotalEnergies SA. The solar energy project will be developed in Madrid Murcia, Andalusia, and various other locations in Spain. The project is expected to reduce dependency on imported oil and gas products for power generation.
  • Therefore, according to the above points, favorable government policies are expected to drive the market during the forecasted period.
Spain Power Market- Solar Photovoltaic Installation Cost

Spain Electricity Industry Overview

The Spain power market is moderately consolidated. The key players in the market (in no particular order) include Endesa SA, Iberdrola SA, Naturgy Energy Group SA, Total Energies SE, Nordex SE, and EDP Group, among others.

Spain Electricity Market Leaders

  1. Endesa S.A

  2. Iberdrola SA

  3. Naturgy Energy Group S.A.

  4. Total Energies SE

  5. Nordex SE

*Disclaimer: Major Players sorted in no particular order

Endesa S.A, Iberdrola SA, Naturgy Energy Group S.A., Total Energies SE, Nordex SE, and EDP Group
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Spain Electricity Market News

  • February 2023: In Castilla y León, Spain, the Spanish energy provider Repsol started producing clean energy at PI, its first renewable project. The PI project, situated in the provinces of Palencia and Valladolid, consists of seven wind farms with a total installed capacity of 175 MW.
  • December 2022: RWE, a major European renewable energy company, commissioned its latest wind energy project in Spain. The 40.8 megawatts (MW) Rea Unificado plant is in Soria, northeastern Spain. The most significant and potent of its Spanish fleet, RWE installed nine Nordex turbines with a combined rated output of 4.53 MW and a rotor diameter of 149 m. Rea Unificado can produce enough green electricity yearly to power 30,000 Spanish households.

Spain Electricity Market Report - Table of Contents


    1. 1.1 Scope of the Study

    2. 1.2 Market Definition

    3. 1.3 Study Assumptions




    1. 4.1 Introduction

    2. 4.2 Market Size and Demand Forecast in GW, till 2028

    3. 4.3 Recent Trends and Developments

    4. 4.4 Government Policies and Regulations

    5. 4.5 Market Dynamics

      1. 4.5.1 Drivers

        1. Integration of Renewable Energy

        2. Supportive Government Policies

      2. 4.5.2 Restraints

        1. High infrastructure costs

    6. 4.6 Supply Chain Analysis

    7. 4.7 PESTLE Analysis


    1. 5.1 Power Generation Source

      1. 5.1.1 Thermal

      2. 5.1.2 Hydroelectric

      3. 5.1.3 Nuclear

      4. 5.1.4 Renewable

    2. 5.2 Power Transmission and Distribution


    1. 6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements

    2. 6.2 Strategies Adopted by Leading Players

    3. 6.3 Company Profiles

      1. 6.3.1 Endesa S.A

      2. 6.3.2 Iberdrola SA

      3. 6.3.3 Naturgy Energy Group S.A

      4. 6.3.4 Total Energies SE

      5. 6.3.5 Nordex SE

      6. 6.3.6 EDP Group

      7. 6.3.7 Grupo Red Electrica

      8. 6.3.8 ABO Wind AG

    4. *List Not Exhaustive

    1. 7.1 Coupling of Renewable Energy Sources with Energy Storage Systems

**Subject to Availability
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Spain Electricity Industry Segmentation

Power generation is generated through various primary sources such as coal, hydro, solar, thermal, etc. In utilities, it's a step before its delivery to its end users. Then the process is followed by Transmission and distribution. Under this, the power generated is distributed via high-voltage lines (transmission lines) and low-voltage lines (distribution lines) as per the requirement of the end user.

Spain power market is segmented by power generation source and power transmission & distribution. By power generation source, the market is segmented into thermal, hydroelectric, nuclear, and renewable. Each segment's market sizing and forecasts are based on installed gigawatts (GW) capacity.

Power Generation Source
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Spain Electricity Market Research FAQs

The Spain Power Market is projected to register a CAGR of 12.89% during the forecast period (2024-2029)

Endesa S.A, Iberdrola SA, Naturgy Energy Group S.A., Total Energies SE and Nordex SE are the major companies operating in the Spain Power Market.

The report covers the Spain Power Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the Spain Power Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

Spain Electricity Industry Report

Statistics for the 2024 Spain Electricity market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Spain Electricity analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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Spain Power Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)