European energy sovereignty and industrial panels
European nations are prioritizing energy independence. The push to reduce reliance on Russian oil and gas in the near term, alongside a longer-term shift away from fossil fuels of any origin, hinges on expanding renewable energy. True autonomy hinges on building a domestic renewable sector rather than switching from one external supplier to another. This is not just about replacing gas from Russia with solar panels from elsewhere; it is about cultivating a homegrown energy economy.
Across the European Union, industry initiatives are accelerating. In this setting, Iberdrola is pursuing a solar panel factory in Extremadura with the capacity to meet about one third of Spain’s current renewable panel demand. The project envisions a manufacturing facility capable of producing 1.6 gigawatts per year, roughly three million solar panels annually. The company has framed the venture as viable for securing European Union funding to bring it to life.
European aid
Iberdrola unveiled its Extremadura photovoltaic panel production plan during the EU’s third Innovation Fund call, a funding program from the European Commission aimed at supporting innovative technologies that reduce emissions. The company notes that European support will be essential to maintaining the project’s competitiveness and scale.
The proposed factory is part of a broader push under the Net Zero Industry Act, a package of measures from the European Commission designed to strengthen the resilience and competitiveness of emission-free production technologies in Europe. The initiative is also framed as a counterweight to the Inflation Reduction Act in the United States, aiming to curb capital flight to North America by boosting Europe’s own manufacturing capabilities.
The company states that opening a new European factory aligns with its strategy to support competitive, EU-wide production, enhance energy self-sufficiency, and cut emissions through investments in renewable energy, grids, storage, and green hydrogen. Special assistance for photovoltaic panel production could provide the economic backing needed to make local component manufacturing for the energy transition competitive, according to Iberdrola [citation: Iberdrola press materials, 2023–2024].
Renewable energy sources in Extremadura
The roadmap for the Extremadura solar panel plant anticipates creating around 500 direct jobs and prioritizing substantial local production, reinforcing the region as a major hub for solar development. Extremadura has become a focal point for accelerating solar deployment across Spain, contributing to a growing share of regional energy projects.
Iberdrola has positioned Extremadura as a cornerstone of its Spanish market expansion, currently operating twenty renewable plants in the region with approximately 4,000 MW of green capacity—about 2,000 MW from twelve solar facilities and 2,000 MW across eight hydro plants. The plan calls for installing more than 2,800 MW in Extremadura by 2025, supported by an investment around 1.7 billion euros.
Overall, this strategy signals a broader commitment to expanding domestic solar manufacturing, increasing grid-connected capacity, and fostering regional employment, all while aligning with Europe’s goals for lower emissions and greater energy self-reliance. The Extremadura project stands as a concrete example of how European industry aims to secure a more resilient energy future for the continent.