Spain’s Solar Boom and the Road to a Decarbonized Grid

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Spain’s solar boom accelerates into 2025

In 2022 the photovoltaic sector achieved a historic milestone by driving rapid development of new projects. Solar parks expanded unevenly across regions: six regions registered little to no new activity, while three concentrated the majority of capacity. The year marked a record for Spain’s photovoltaic industry as a whole, with a surge in new solar plants reaching a historical peak. Spain aims to accelerate decarbonization in the coming decades by favoring renewables.

Spain installed 4,701 megawatts last year in ground-based photovoltaic capacity, a rise of almost 25% over 2021’s 3,500 MW, according to UNEF annual data. This growth came as the sector continued building new solar facilities and expanding grid-connected power through a robust installation pace.

The pace of new solar projects varied sharply by autonomous region. Over the last year, several regions reported minimal growth, while three autonomous communities accounted for more than 80% of total new capacity, totaling 3,778 MW.

Extremadura led with 1,467 MW, followed by Andalusia with 1,186 MW and Castile-La Mancha with 1,125 MW. These regions initiated most new grid-connected solar production, while Castilla y León (412 MW) and Aragon (307 MW) also added notable capacity. The joint records of Red Eléctrica de España, the high voltage grid manager, corroborate these figures.

Traditionally, Extremadura, Andalusia and Castile-La Mancha host the largest solar assets, concentrating just over 60% of Spain’s ground solar capacity, which stood at 19,864 MW at the end of 2022. The acceleration in 2022 further widened the lead among these regions, intensifying regional disparities in solar deployment.

Industry observers note that the strongest activity occurs where there is ample sunlight and easier land-use opportunities, but regional administrations differ in how quickly they process and promote solar projects. Regions with faster permit processes and pro-solar policies tend to attract more developers and investments.

approaching avalanche

The pace of deployment shows continued momentum this year. Internal UNEF figures indicate that by August around 2,300 MW of new capacity had been added, and UNEF projected that the year could reach the 2022 record. This trajectory aligns with a growing belief that the industry may match or exceed last year’s peak by year-end.

Renewables push for another two-year extension to build thousand green plants

In June the government circulated a draft update to the National Integrated Energy and Climate Plan PNIEC, outlining a roadmap for clean energy and decarbonization by 2030. The draft envisions reaching 57,000 MW of above-ground photovoltaic capacity by the end of the decade, with additional facilities depending on grid readiness. If realized, it could require roughly 29,600 MW of new capacity and attract around 20.7 billion euros in investment.

There are photovoltaic projects at various stages of maturity within the administrative process that aim to exceed the PNIEC target. Approximately 53,000 MW of the 68,000 MW of renewable energy projects seeking permits at the national level relate to photovoltaic initiatives. However, not all projects will clear every regulatory hurdle, and the sector still faces challenges in securing grid access in congested regions and managing construction timelines.

Occupies 0.38% of agricultural land

Social concerns about renewable expansion persist in Spain, with neighbors worried about the impact on local landscapes and agriculture. The solar sector argues that land use can be managed to minimize conflicts and that agricultural activity can continue alongside solar developments. UNEF emphasizes that achieving PNIEC goals does not require sacrificing agricultural lands and notes that only a small fraction of Spain’s farmland would be needed for new solar capacity if planned carefully.

UNEF representatives argue for a pragmatic approach: land can be used efficiently, and solar projects can coexist with farming. The goal remains to balance energy goals with rural livelihoods as the deployment unfolds.

Expansion of self-consumption

The solar boom also boosted self-consumption. 2022 saw record growth in photovoltaic self-consumption across Spain. UNEF reports that renewable electricity companies installed facilities with more than 2,500 MW of self-consumed PV capacity, doubling the previous year and bringing total operational self-consumption to about 5,250 MW.

Congestion in the distribution of self-consumption aid

A surge in electricity prices and substantial European funds spurred a wave of self-consumption installations, especially in homes, industry and workplaces. However, the distribution of aid has slowed after the rapid growth, with some regional authorities delaying payments and creating bottlenecks. UNEF notes a sentiment among consumers that subsidies are slow to reach beneficiaries while energy prices remain elevated compared with historical norms.

Industry observers warn of a backlog in processing more than 500,000 aid applications at the regional level, with several areas experiencing extended wait times before subsidies are disbursed. Delays in claims processing have extended beyond two years in some cases, affecting the timely uptake of incentives for solar self-consumption.

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