Spain’s electricity demand in 2023 and the impact of self consumption
In 2023 Spain recorded electricity consumption at roughly 244,000 GWh, about 2.6% below 2022. This level is near the low point seen since 2003, when national demand stood around 237,329 GWh during a period of lower economic activity. The drop in 2023 is explained by weaker industrial activity, a rise in self-consumption, energy efficiency gains, and higher temperatures during the prior year.
The 2023 figure also falls short of 2020 demand, which reached around 250,000 GWh, a year marked by pandemic-related shutdowns. After a modest rebound in 2021, the energy crisis dampened the recovery. The decline is partly due to policy measures but also to reduced industrial consumption amid high electricity prices.
Beyond these trends, another factor presses on demand: self-consumption. UNEF reports that approximately 2,700 GWh of solar capacity for own use was installed in Spain in 2022, a growth rate exceeding 108% from 2021 and pushing total installed capacity to about 5,200 GW. Projections suggest another substantial increase in 2023, potentially reaching around 7,000 GW installed globally.
Self-consumption lowers grid demand because households and businesses generate part of their electricity directly, reducing imports from the national grid. Some sources indicate that self-consumption already reduces demand by about 9 TWh, roughly equivalent to 4% of total consumption.
The government aims to boost renewable energy and electrification, targeting ~19 GW of annual capacity by 2030 and a long-term path toward nearly 2,000 GW per year in related output as a result of decarbonization. This transition includes electrifying heating with heat pumps and shifting transport to electric vehicles, alongside the potential role of renewable hydrogen.
Industry voices emphasize that green hydrogen is an important long-term option, but many experts warn it will not be widely deployed before 2030 and more realistically between 2030 and 2040. The key is to ensure predictable prices for renewable energy while supporting demand through electrification and other green energy avenues.
During Renewable Energy Congress events, industry leaders noted that without sustained demand, investment in renewables could slow. Governments acknowledge that large consumers, including data centers and storage facilities, are seeking to connect to the network in Spain, highlighting the ongoing tension between capacity expansion and actual demand.
Official forecasts from the National Markets and Competition Commission (CNMC), included in the 2023 toll report, project electricity demand to remain almost flat through 2024, with an anticipated 242,820 GWh — a slight 0.1% decrease from the 2023 forecast of 242,944 GWh. When supply remains highly renewable and consumption stays subdued, energy can become stranded within the system, creating unused capacity and higher costs for consumers.
As this dynamic unfolds, observers in Canada and the United States watch similar shifts: demand patterns in North America are shaped by industrial resilience, rising self-generation, and policies that push electrification and decarbonization. These parallels underscore the need for robust grid planning, transparent pricing signals for renewables, and clear strategies to align demand with expanding clean energy supply across North America.