Electrification accelerates in the public debate and in the plans of companies and administrations: several recent reports indicate that increasing the speed of electric cars, air conditioning with heat pumps and electrical industrial processes could add up to 30 TWh of annual consumption and generate savings close to 6.710 millones de euros for the Spanish economy.
Behind these figures are very competitive renewable costs In Spain, there are new network and charging infrastructure needs, and a battery value chain that Europe is trying to consolidate without losing its pace. The focus, however, is on transport, buildings and industries, where the climatic and economic impact is most visible.
Savings and demand: what accelerating electrification would mean
The analysis by APPA Renovables, prepared together with NTT Data, maintains that a push aligned with the PNIEC would raise the demand between 20 and 30 TWh (around 12% of 2024 consumption) and would cut the country's energy bill by billions per year. The current context shows a renewable generation that reached 56,8%. in 2024 and the PNIEC forecasts for 2030 a increase of 34% in electricity demand compared to 2019, which reflects the existence of margin and will to electrify transportation, homes and industry.
Competitive advantage is based on levelized costs very low: solar is around € 43,85 / MWh and wind power € 31,30 / MWh, below gas (above €50/MWh) and far from its recent volatility (peaks of €183/MWh in 2021 and €98/MWh on average in 2022). With these prices, Spain can attract electro-intensive industry and booming sectors such as data centers, whose demand could be located in 10–15 TWh in 2030 (up to 5% of expected renewable generation), favored by location, connectivity and submarine cables. The rise of electric cars in China is driving demand for electrification..
Homes and buildings: heat pumps, aid and benefits
At home, the transition to electric solutions allows for cutting costs and emissions. average household could save 64% (some € 1.433 / year) if you combine a heat pump for heating and DHW with electric vehicle. CO2 reduction reached 83% and it would be total if the electricity comes from renewable sources. Heat pumps achieve up to 4 times higher efficiency that gas or diesel boilers, with savings of €380–680 per year per dwelling; deductions and incentives current ones make it possible to reduce the initial investment by up to 35%.
To accelerate its adoption, measures such as lower VAT from 21% to reduced rates, as in Portugal, France or the United Kingdom; extend Deductions In the Personal Income Tax (IRPF), create a specific category for aerothermal energy; establish single windows to expedite procedures; apply local bonuses (IBI, ICIO) and simplify the procedures of installation.
Transport and fleets: from private cars to companies
In mobility, the electric vehicle contributes energy savings of €900–1.000/year compared to combustion engines and, considering the total cost of ownership, it can be a 10% Organic than its thermal equivalent, with incentives that raise the difference to 40%. In addition to reducing urban emissions, the key is to have stable policies and an effective deployment of charging points, such as those explained in electric charging infrastructure.
Among the recommendations for the Spanish market, the following stand out: strengthen aid programs (the current plan was recently suspended), advance payment of subsidies to prevent buyers from having to advance money, including income criteria to prioritize vulnerable households, apply a super-reduced VAT (4%) in the purchase of electric vehicles and 0% in VAT for companies (as in Portugal). In addition, it is recommended to maintain a 15% deduction in personal income tax, exemption from registration tax, expand the IVTM bonuses and establish an efficient plan to expand the recharging network.
Charging and user experience: what needs to be improved
Roland Berger's EV Charging Index 2025 shows that the penetration BEV sales in Spain remained stable in 2024. Although Europe added more than 2,7 million of units, the national market did not experience significant growth and barely one in twenty vehicles in circulation are electric. More than 30% of the loads are carried out in Public spaces, surpassing countries like Norway or Canada, which reflects the dependence of public roads on the difficulties to install points in residential communities and the associated costs.
The distribution estimates that the 66% of the refills are made at home, the 3% at work and 1% in other places. Despite the increase in points, less than 50% of users consider that public charging is more comfortable today, and the 44% estimates that charging prices in public spaces are higher than expected. The main obstacles remain the load times, network coverage and lack of services at stations.
Recommended accelerate the adoption of DC charging and improve service quality, especially in urban areas and interurban corridors. To achieve this, it will be essential to channel European funds and attract private investment, ensuring a homogeneous deployment and avoiding gaps between rural areas and those without parking infrastructure.
Industry and supply chains: heat, batteries and networks
The Spanish industry allocates 57% of its final energy to produce heat, and the 77% of that energy comes from fossil fuels. Electrification through industrial heat pumps (along with technologies such as solar thermal) could cover up to 80% of the heat needs in sectors such as food, paper or chemicals, with a Total Cost of Ownership (TCO) until a 61% smaller than conventional boilers and investment returns less than four years, reducing exposure to oil and gas volatility.
To facilitate projects, experts suggest speed up the PERTE for Industrial Decarbonization (currently with procedures of up to 18 months), open a specific line for industrial electrification, exempt the electro-intensive companies from payment to the FNEE (as in France or Germany), guarantee the maximum bonus by indirect CO2 for five years, reducing the IAE and remove barriers to PPA, such as high connection costs. It is also recommended to speed up permits infrastructure and facilitate financing through European funds, FNEE or deferred payments on the electricity bill.
In the transversal dimension, it is proposed to reduce the Special Tax on Electricity (IEE) al 0,5%, remove the Tax on the Value of Electric Energy Production (IVPEE) (7%), bring forward the CO2 Emissions Charge (ETS2) through a tax and reduce the VAT on electricity at 4%. In addition, it is proposed to redesign the aid, transferring it from personal income tax to Corporation tax to be applied as direct discounts. In parallel, it is essential to plan investments in networks (ports, airports, logistics nodes), modernize infrastructure, strengthen distribution and transport connections, and set an example from the Administration through fleet renewal with electric vehicles and aerothermal energy in buildings, with a clear aid plan to avoid downtime. As a financial mechanism, it is proposed to establish a National Transition Fund financed by the consumption of fossil fuels.
The dependence of the supply chain on batteries remains a European challenge. The dependence on Asian cells and industrial obstacles became evident with the situation at the Skelleftea in Sweden, which did not reach more than 30% of its initial capacity and ended up bankrupt before being acquired by LytemThis group will also take over another plant in Germany and is doing business in Canada. The priority now is to ensure local capacity and technology transfer without losing control or employment. In line with this, projects such as the CATL with Stellantis in Figueruelas announce the incorporation of more than 2.000 workers for its implementation. Applications for battery recycling and management in electrification.
From the public sphere, initiatives arise so that municipalities with shoestring budget can renew their fleets, such as the agreement between Renault and the FEMP, which enables a rental of 48 months No bidding required, maintenance and insurance included, for electric vehicles E Tech. Options for administrative tasks are contemplated (Renault 5 E-Tech, Megane E Tech) and charging (Kangoo E-Tech, 120 CV y 285 km of autonomy), including functions such as V2L bidirectional charging.
The European Environment Agency stresses that electrifying heating, transport and industry and accelerating the deployment of renewables is essential for a more sustainable system. competitive and autonomous in the EU. If the 2030 targets are met, variable generation costs could be reduced by up to 57%.
With all these efforts, the path to a more decarbonized and efficient economy is clear: Affordable renewables, robust grids, and end-use electrification can reduce external dependence, reduce CO2 emissions, and boost industrial activity, provided that charging, processing, and supply chain barriers are addressed in a timely manner, and aid and investment policies are maintained.