News Release from GlobalData

Wind Industry Profile of

GlobalData

07/28/2022

Strong policies and investments key for Spain to meet its 2030 renewable targets, says GlobalData

The Spanish government aims to achieve 160 GW of total installed renewable capacity by 2030 and has set a target to achieve 74% renewable electricity generation by 2030 and 100% by 2050. The country has taken a meticulous approach towards phasing out coal power generation by 2025, decommissioning oil-power plants by 2030, and phasing out nuclear power completely by 2035, found GlobalData.

According to the leading data and analytics company, all of these bode well for the renewables market as the government looks to fill the void with renewable power capacity. However, successive governmental change and poor implementation on effective usage of renewable power is a major challenge.

GlobalData’s latest report, ‘Spain Power Market Size, Trends, Regulations, Competitive Landscape and Forecast, 2022-2035’, reveals that the government introduced auctions to lessen the economic burden caused by previously provided incentives such as Feed-in Tariffs (FiTs) but it slowed the growth of renewable power adoption. The government has estimated that investments of EUR241 billion is required to meet National Energy and Climate Plan 2021-2030 (NECP) targets, 80% of which is expected to come from the private sector.

Attaurrahman Ojindaram Saibasan, Power Analyst at GlobalData, comments: “Spain may fall short by nearly 23 GW of its renewable capacity target and nearly 14% of its renewable generation target of 2030. The country needs to pull in private investments and improvise on effective use of technology to achieve optimum generation from its renewable power capacity.”

Image: GlobalData

Saibasan continues: “In recent years, the Spanish government had received too many proposals for renewable power projects with most likely to be rejected. However, the previous law meant they could not directly reject a project proposal without going through the entire administrative process.

“To overcome this, the Spanish government introduced simplified approval procedures under Spain’s Royal Decree – Law 6/2022. This meant that the ministry could fast track projects that are most likely to see the light of day. The decree has also set provisions to conduct self-supply capacity auctions in nodes and has also provided regulations for floating solar PV plants. These recent measures provide a positive boost that was desperately needed by the renewables market.”