Spain | The Power Grid, the Overlooked Cornerstone of the Energy Transition

Summary

Spain's electricity faces significant challenges. While recent efforts have focused on expanding wind and solar capacity, effective grid integration is equally crucial for a successful energy transition.

Key points

• Key points:
• Territorial Divide. Spain’s electricity landscape reveals a stark territorial divide: bustling urban areas consume far more energy than they produce, while other regions generate surpluses that keep the lights on nationwide.
• Challenges in Renewable Energy Transmission. Despite significant growth in renewable capacity, transmission infrastructure has not kept pace. The concentration of wind and solar in specific regions necessitates improved grid connections to prevent bottlenecks and ensure efficient electricity distribution.
• Curtailment and Grid Congestion. Limited grid capacity and insufficient storage led to Spain wasting around 1% of its renewable energy in 2023. Curtailment has increased costs by driving up wholesale electricity prices, while the need to replace curtailed renewable energy with fossil fuels has contributed to higher emissions​.
• Need for Grid Investment and Expansion. The transition to renewables requires substantial grid expansion and modernization. However, delays in permitting and supply chain constraints have slowed progress, preventing Spain from fully capitalizing on its abundant renewable resources as a competitive advantage.

Geographies

Topics

Tags