Spain | Renewables: Wind north, solar south -strong growth yet falling short of targets

Summary

Location selection for renewables has been primarily driven by technical and geographic criteria, with minimal influence from local socioeconomic factors. Although Spain has experienced two significant waves of renewable expansion, it still falls short of the targets set by the government, especially in wind energy.

Key points

• Key points:
• Two Waves of Renewable Expansion: Spain has experienced two distinct investment cycles in renewables—an initial wave (2008–2014) driven by public subsidies, followed by a second wave (2019–present) fueled by low interest rates, reduced technology costs, and government auctions. Wind farms remain largely in the north and eastern areas, whereas solar projects have shifted toward larger-scale installations in the south.
• Location Driven by Technical & Geographic Factors: Project siting is determined predominantly by natural resource availability (solar radiation for photovoltaic, wind consistency for wind farms) and land characteristics (terrain, connection to the grid). Socioeconomic variables, such as unemployment or wage levels, appear to have minimal impact on location decisions.
• Challenges Meeting National Targets: While solar expansion is somewhat on track—requiring annual installation growth only 25% above the recent average—the wind sector lags significantly, needing an annual increase four times higher than current rates to reach the 2030 goal established by the National Energy and Climate Plan (PNIEC).
• Pace Versus Ambition: Despite meaningful progress, Spain’s renewable capacity additions still fall short of the accelerated pace needed to achieve the 2030 targets. Bridging this gap will require overcoming grid constraints, deploying energy storage, and ensuring that policymaking supports the scale and speed of expansion necessary for long-term decarbonization.

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