Spain Renewable Energy Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
The Spain Renewable Energy Market is segmented by Type (Hydro, Wind, Solar, and Other Types)
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Scope of the report
Key Market Trends
TABLE OF CONTENTS
2016 - 2026
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The renewable energy market in Spain is expected to register a CAGR of more than 6% in the forecast period of 2020-2025. Factors, such as encouraging government policies and efforts to meet the rising power demand using renewable energy sources and to reduce the dependency on fossil fuels, are expected to act as significant contributors to the growth of the market. Increasing efforts to achieve the European Union’s climate and renewable goals is pushing Spain to take initiatives to improve the renewable 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, the problem of limited land and limited power capacity by variable renewable energy sources is expected to have a negative impact on the market in the coming years.
Solar energy is becoming one of the significant sources of electricity generation, and its share is increasing in Spain. In 2018, solar held an increasing share of 4.5% in net installed power capacity. With a projected installation of more than 35 GW by 2030, solar energy is going to drive the renewable market significantly.
With an installed capacity of more than 25.54 GW of wind energy by the end of 2019, Spain is leading the global wind energy market in the fifth position. However, the country has a negligible amount of offshore wind capacity and this market remains untapped. Hence, offshore wind power is marketexpected to provide an number of opportunities in the near future.
The Government of Spain took bold steps, like the removal of sun tax in 2018, the formation of Strategic Energy Technology Plan, and 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. Such initiatives are expected to drive the market in the coming years.
Scope of the report
The Spain renewable energy market report include:
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Key Market Trends
Solar Energy to Witness a Significant Growth
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 solar projects by 2030 to increase renewable share by 74%. Projects with a capacity of 8000 GW 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 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 most significant in entire Europe and can supply power to 250,000 people.
Iberdrola is planning to build a 590 MW capacity plant Francisco Pizarro, that will be commissioned in 2022. After completion, it will become Europe’s largest solar power plant in the forecast period.
With ambitious projects lined up to achieve the aim of 37 GW by the end of 2030, the solar power sector is expected to witness a significant growth during the forecast period.
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Government Policies and Regulations to Drive the Market
To meet Europe’s energy and climate targets by 2030, Europe 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.
In 2018, Spain was the third country in the world in terms of the net value of wind power technology exports. With the goal of installing 50 GW of wind energy by 2030, Spain is expected to improve its stand in the global market.
The policies and steps that Spain’s government is going to take in the forecast period are going to be one of the significant factors that will be governing the future of renewable in Spain.
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The Spain renewable energy market is partially fragmented. Some of the major companies include Siemens Gamesa Renewable Energy SA, Acciona SA, Iberdrola SA, Cobra Instalaciones y Servicios SA, and Red Electrica Corporacion SA.