Spain gears up for a wave of renewable installations
Spain is bracing for hundreds of new renewable energy projects in the coming years, with the potential to reach close to a thousand. A defined legal window aims to have these projects online by mid-2025. If projects miss this deadline, they risk losing the right to connect to the national grid and may need to restart the administrative process from scratch.
Industry bodies in the renewable sector have warned for some time that the sheer volume of projects makes meeting the temporary deadline difficult. They expect congestion to force the sector to rush to hire suppliers, potentially the same suppliers for multiple projects, to manage the influx. There is urgency to accelerate the facilities, but wind and solar associations disagree on how to proceed. They are pressing the government to consider a deadline extension, while internal disagreements between subsectors complicate a unified approach.
Differences between renewable energy sources
The photovoltaic sector, represented by UNEF, has clearly called for a two-year extension. They advocate keeping the current caps but extending the deadline to mid-2027 to prevent a bottleneck with suppliers. They argue that any extension should come without new conditions that could hamper financing. The solar association emphasizes that more time is needed, yet without introducing new obstacles that could derail project financing. If not addressed, securing bank support becomes more challenging as time stretches on.
Wind companies, represented by the Wind Cooperation (AEE), ask for a more selective approach. They proposed extending up to two years for each project but want this extension tied to stricter guarantees. They note that basic equipment for many facilities has already been purchased, and sources from industry groups confirm this readiness. The AEE proposal would require the Ministry to demand higher guarantees, ensuring projects have a real chance to proceed rather than remain speculative. Currently, developers must post a guarantee of 40,000 euros per megawatt (MW). Under the two-year extension, the proposal calls for an additional 40,000 euros per MW; for a full two years, 80,000 euros per MW would be required.
Additionally, AEE asks for a declaration from the company one year before the deadline, confirming that purchase agreements for essential equipment and materials are in place. This is meant to prevent projects with only speculative intent from advancing. If the necessary equipment is not secured a year in advance, the facility could lose its grid connection permit and be allocated to another project, according to AEE, who stressed that non-compliance would be grounds for reassignment.
The government is taking its time
The government has already granted two extensions to help complete the full administrative permit process, which can span about five years. A total of 15 months of relief has been approved in stages, including timelines for environmental impact statements and construction permits. The administration justified these extensions due to covid-era delays and the overload of public administrations reviewing applications.
With mounting pressure from the industry for another postponement, the government has shifted toward allowing delays while showing reluctance to grant new extensions. Teresa Ribera, vice president and minister for Ecological Transition, acknowledged at UNEF’s annual congress that some projects may require more time, but she did not commit to broad, generalized extensions. The administration suggested that extending deadlines might not be feasible through a multilateral royal decree because it would not qualify as an emergency measure.
Last June, the government approved the final extensions already granted by the macro decree from the previous administration. Renewable energy interests argued for additional months to obtain a construction permit, particularly for projects targeting completion by July 2025. The Ministry of Ecological Transition later indicated that extending deadlines ending in mid-2025 could not easily be justified within the current regulatory framework.
A lengthy process
As of January, projects totaling 58,000 MW had received a mandatory environmental impact statement to advance. This step is just one of many bureaucratic hurdles before facilities can begin operations. Following the environmental declaration, most projects in the preparation phase secured preliminary administrative permission from the central government or autonomous communities before late April. They now face the task of obtaining a construction permit by late January under an extended timeline. The government will later assess how many projects passed screening to decide whether an extension is warranted.
Before the extensions, about 15,000 MW had secured final permits, while the remaining 43,000 MW faced significant risk due to bureaucratic delays and required changes. In addition to those 43,000 MW planned plants, another 10,000 MW with more time have the possibility to benefit from a six-month extension. In total, about 1,000 projects with a combined capacity of 68,000 MW are slated to commence construction in the coming years.
Source attribution: industry associations and news outlets reporting on government policy and regulatory decisions regarding renewables in Spain.