Renewable energy in Spain, consisting of bioenergy, wind, solar, and hydro sources, accounted for 25.0% of the Total Energy Supply (TES) in 2023. In the same year, the share of electricity generated from renewable sources reached 50.3%, reflecting the country's progress towards its decarbonisation goals. Wind energy production reached 24.5%, hydroelectric 13.6%, and solar 20.3% of total energy production in 2023. In 2024, renewables already covered 64% of Spain's electricity generation, mainly from wind and solar.
Spain expanded wind power rapidly in the early 2000s and later experienced strong growth in solar photovoltaic capacity. Renewable expansion accelerated after 2018 following the adoption of updated national and EU climate and energy frameworks, including Spains Integrated National Energy and Climate Plan (PNIEC) for 2021-2030.
Spain, along with other European Union (EU) States, has a target of generating 32% of all its energy needs from renewable energy sources by 2030. A previous target of 20% for 2020,DIRECTIVE 2009/28/EC OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL, 23 April 2009, p. 31. with an additional 0.8% available for other EU countries under the cooperation mechanism, was reached and slightly surpassed. Under the revised EU Renewable Energy Directive (RED III, 2023), the new binding target is 42.5% by 2030, with an aspiration to reach 45%.
The European Environment Agency reports that renewable energy growth, particularly in wind and solar power, has reduced Spain's reliance on coal and oil and reshaped its electricity mix, with renewables surpassing nuclear generation since 2012. However, challenges remain in reducing final energy consumption and meeting the 2030 efficiency targets. In addition, economic losses due to extreme weather events have exceeded EUR 95 billion since 1980.
Spain has many energy related national policies, including the Climate Change and Energy Transition Act of 2021 aims for climate neutrality by 2050, with targets including 74% renewable energy production, a ban on polluting vehicle sales by 2040, and mandatory low-emission zones in cities. The Integrated National Energy and Climate Plan (2021-2030) aligns with EU goals, aiming to cut greenhouse gas emissions by 40%. Royal Decree 244/2019 promotes rooftop solar adoption with financial incentives for surplus energy exports. While renewable energy employment declined after 2015, the sector has been recovering since 2018, though regional growth remains uneven.
Development
In the early 2000s, the growth of wind power contributed to an increase in Spain's renewable electricity production. By 2021, wind and solar energy made up 23% and 8% of total electricity generation, respectively. The installation of photovoltaic (PV) plants beginning in 2007 played a key role in this increase, doubling the renewables' share in Spain's electricity mix from 20% in 2008 to 40% in 2013. After this period of growth, the share of renewables in Spain's electricity generation leveled off, reaching 37% by 2019, and 47% by 2021.
Spain's renewable energy sector has undergone significant shifts, initially driven by the 1997 Special Regime and Royal Decree 661/2007, which promoted considerable growth in wind and solar PV installations through favorable conditions and feed-in tariffs. However, the dynamics of the sector shifted following legislative reforms in 2012, marked by the enactment of Law 24/2013 and Royal Decree 413/2014. These reforms introduced a new financial framework for the electricity market, modifying compensation mechanisms for renewable sources, which led to a deceleration in new developments. Consequently, the rapid increase in renewable capacity, notably in wind energy, from 2.2 GW in 2000 to 23.0 GW in 2013, slowed, with only a slight rise to 23.4 GW by 2018. Solar PV installations experienced a similar trend.
In 2015 Spain introduced Royal Decree 900/2015 regulating electricity self-consumption, sometimes referred to as the "tax on the sun." The policy introduced charges on electricity generated and consumed through photovoltaic self-consumption systems connected to the grid. Studies examining the policy have found that it was associated with a slowdown in the adoption of PV self-consumption systems in several Spanish regions. The regulation was later repealed in 2018 as part of broader reforms promoting renewable energy and self-consumption.
The tax created controversy among stakeholders. On the one hand, the government has argued that those generating their own power still rely on the national grid for power backup and so should be liable for contributing to the cost. On the other hand, the solar industry has argued that the government is simply trying to protect the centralized established power producers whose revenues would be threatened by this competitive solar threat. Environmentalists have criticized the tax for artificially blocking Spain from continuing its long standing movement to renewable energy production.
Spain is advancing Europe's energy autonomy with Iberdrola's renewable energy projects, supported by a €1 billion loan from the European Investment Bank in a deal signed in June 2023. Iberdrola plans to build 19 solar photovoltaic power plants and three onshore wind farms in Spain, Portugal, and Germany, with a total capacity of nearly 2.2 gigawatts. These projects aim to generate 4 terawatt-hours of electricity, equal to the annual consumption of over 1 million households. Importantly, 70% of these installations will be in rural areas affected by the transition to net-zero emissions, fostering regional development. To ensure a stable power supply, Iberdrola will integrate hybrid battery systems into its photovoltaic projects. These plants are expected to be operational by the end of 2028, aligning with the European Commission's REPowerEU plan to reduce fossil fuel imports and accelerate the green transition and Directive 2009/28/EC of the European Union (EU).
In 2023, Spain set new records in renewable energy generation, with over half (50.3%) of its electricity coming from wind, solar, and hydropower. The country installed an additional 5,594 MW of solar photovoltaic power, a 28% increase from 2022, making solar 20.3% of the energy mix. This contributed to a 15.1% rise in renewable energy production and a nearly 28% reduction in greenhouse gas emissions. Wind power remained the top energy source at 24.5%, followed by combined cycle (20.9%), solar (20.3%), and hydropower (13.6%). Coal saw the steepest decline, dropping by 50.1% to just 1.5% of the mix. Spain also maintained high service quality and recorded one of its highest electricity export surpluses.
Energy Policy
Climate Change and Energy Transition Act of 2021 The Climate Change and Energy Transition Act was passed by Congress with the aim to comply with the goals of the 2015 Paris Agreement and reach climate neutrality (full decarbonization and a 100% renewable energy grid) by 2050. Specific objectives include:
Achieving at least 42% of total final renewable energy consumption and 74% total renewable energy production Ending the sale of polluting vehicles by 2040 Requiring all cities with over 50,000 residents to adopt sustainability mobility plans that include low-emission zones, Requiring cities of over 20,000 residents to approve low-emissions zones if their air quality is poor Establishing charging points at gas stations and buildings with more than 20 parking spots Promoting financing of public transportation Prohibiting new hydrocarbon extraction projects (fracking) Promoting installation of solar panels for private use/ self-consumption
The government will be required to revise the law every five years according to progress made. The revisions will include national plans for adaptation to climate change that identify risks and impacts on natural systems, territories, people, and socio-economic sectors. The law also includes a committee of scientific experts on climate change to be established as the leaders in evaluating issues and making recommendations.
Integrated National Energy and Climate Plan Every EU member state was required to submit a climate and energy plan to the European Commission by the end of 2019. Spain's Integrated National Energy and Climate Plan is an implementation plan outlining Spain's pathway to achieve its climate and energy targets for the years 2021-2030 in alignment with the European Union's climate and energy framework and overall, 2030 goals. Its specific targets include reducing greenhouse gas emissions by 40%, increasing the share of renewable energy to at least 32% of EU energy use, and improving energy efficiency by at least 32.5%. It details policies and measures in all sectors needed for this transition, including energy, transport, agriculture, waste management, and more. The plan also focuses on energy sharing and exportation/ importation. It lays out goals to intensify regional cooperation between Portugal, Spain, and France to provide stable energy security.
Royal Decree 244/ 2019 To promote the adoption of renewable energy, Royal Decree 244/2019 was enacted. It established a framework for the nationwide deployment of rooftop solar panel installations. It also introduced a financial mechanism that allows for bill reductions based on the electricity exported to the grid, with compensation determined by the hourly wholesale price and capped by actual consumption. Additionally, this framework supports shared self-consumption installations, enabling multiple consumers to collectively benefit from a single renewable energy system.
Employment in Renewable Energy Initially, there was growing national interest in renewable energy, but a sharp decline in production and employment occurred after 2015. However, since 2018, the sector has shown signs of recovery, with renewed confidence in meeting national goals. Despite this, short-term job growth in the industry remains overall limited. At the regional level, growth has been uneven, with Extremadura, Galicia, and Navarra outperforming the national average. To address this, the EU has implemented financial mechanisms, such as European Funds, to reduce these gaps. Moving forward, Spain must establish a unified renewable energy policy to promote regional balance of employment growth in the industry.
Energy consumption by sector All EU countries as well as Iceland and Norway submitted National Renewable Energy Action Plans (NREAPs) to outline the steps taken, and projected progress by each country between 2010 and 2020 to meet the Renewable Energy Directive. Each plan contains a detailed breakdown of each country's current renewable energy usage and plans for future developments. According to projections by the updated Spanish submission dated 20/12/11 by 2020 the gross final energy consumption in Spain by sector breaks down as follows. Projected energy use by sector in 2020ktoeRE 2020 targetRE 2020 consumptionHeating and cooling30,92917.3%18%Electricity31,96139.0%42.9%Transport32.30111.3%9.5%Gross final energy consumption*98.69320.0%21.2% Including losses and adjustments