The processing of permits to build new power lines and substations has become the major bottleneck hindering the development of the grid in Spain. Red Eléctrica de España (REE), part of Redeia, insists that there is no lack of money or technical capacity, but rather a lack of administrative authorizations to implement the planned development.
According to the company, the Spanish electricity system already has a very high volume of access and connection permits for both new generation and increased demand. This situation highlights the amount of renewable energy that is not being utilized by the grid, but a significant portion of these projects fail to materialize due to the time involved in obtaining construction permits and environmental permits. The result is a genuine bottleneck that slows down investments considered critical for the energy transition.
REE points to permits as the main obstacle to investment
The CEO of Redeia, Roberto García MerinoRed Eléctrica has reiterated in various industry forums that it is not allocating more resources to new infrastructure simply because it "does not have the permits to invest more." In other words, the limit is not determined by cash flow or industrial capacity, but by the speed at which administrative procedures are processed.
The executive insists that any project that already has a construction permit is currently under construction. From his perspective, this demonstrates the company's capacity to execute its plans as soon as it receives the green light from the relevant authorities, without internal or financial bottlenecks.
García Merino also insisted that the public debate on network capacity be based on “concrete data” and not on generic perceptions. In his view, with the current configuration of the transmission network in Spain, “there is no need to build another substation or another kilometer of circuit” to accommodate the portfolio of projects already linked to the network, provided that the established technical criteria are respected.
REE's management emphasizes that the operator's investment plan is directly linked to the National Energy Plan, a document that defines which infrastructure needs to be built and within what timeframes. The company stresses that its priority is to implement this plan "as soon as possible," but the pace depends largely on administrative efficiency.
In this context, Redeia has highlighted that the last fiscal year was a record year for investment in the transport network , with more than €1.500 billion invested solely as the system operator (TSO). The company maintains that this figure demonstrates its investment commitment and that the restriction is unrelated to its financing capacity.
A backlog of permits with 130 GW in generation and 20 GW in demand
The pressure on the grid is reflected in the very figures handled by the system operator. Currently, access and connection permits have already been granted for approximately 130 gigawatts (GW) of new electricity generation and 20 GW of demand, figures that are close to the size of Spain's current generation capacity.
This volume of projects with grid connection rights illustrates the extent to which the system is strained by the massive influx of renewables and the electrification of the economy. However, having an access and connection permit does not mean that the installation is actually built and feeding energy into the grid, as the entire authorization process still needs to be completed.
García Merino explained that, with the transport network already deployed and the current planning in place, the existing infrastructure can handle a significant portion of this new capacity without immediate expansions, provided the planned projects are implemented. Only then, he maintains, will there be a need to update the planning to meet the additional demand.
Meanwhile, the group points out that there are firm permits to incorporate up to 20.000 megawatts (MW) Additional new demand on the transmission and distribution networks, in a context where peak winter consumption is currently around 38.000-40.000 MW. This margin indicates that the system has room to accommodate new industrial activity and electrify consumption.
REE's interpretation is clear: the "bottleneck" is not in the availability of projects, nor in the operator's willingness to build, but in the delay in completing the construction permits that turn those rights on paper into physical infrastructures connected to the network.
Construction deadlines versus processing deadlines: where is the bottleneck?
One of the comparisons most frequently made by Red Eléctrica's management is that between construction time and paperwork time. According to García Merino, building a "normal" substation usually takes about a year, while constructing a long-distance transmission line can require about two years of actual work on the ground.
The picture changes radically when the administrative side is analyzed. The CEO himself explains that the processing of a substation It can take between three and six years, while a medium- or long-distance line can take “from six to twelve years” to obtain all the necessary permits. In other words, the permits can double or even multiply by five the time the construction takes.
In this scenario, Redeia insists that “there are no financial or supply chain restrictions” preventing the projects from being carried out. They also do not identify any problems with internal execution capacitysince the bulk of the actions are carried out within relatively limited timeframes once the administration gives its final approval.
The core of the problem, according to the company, lies in the fact that the operator is forced to "fight against the entire permitting process ," which includes multiple sector reports, environmental assessments, appeals, expropriations, and other phases subject to sequential deadlines. While REE acknowledges that these safeguards are necessary, it requests that the procedure be made more predictable and streamlined.
Therefore, the company is open to approaches such as the introduction of "positive silence" or declarations of responsibility for certain authorization phases, in line with proposals being discussed at the European level. The idea is that, if the administration does not respond within a specified timeframe, the project can proceed, always with subsequent monitoring mechanisms in place.
A European debate: networks, renewables and procedures in the spotlight
Red Eléctrica's concern is not an isolated case within the continent. In the European Union, the deployment of transport and distribution networks It has become a priority issue given the strong growth of renewables, the electrification of industry and the rise of electric vehicles, among other factors.
A recent European Parliament report places the average total duration of transmission network projects at around a decade, with more than half of that time tied to permits and administrative procedures. Brussels emphasizes that this dynamic is slowing the integration of new renewable capacity and the development of large electricity consumers.
The European Commission has responded with a specific package focused on grids, known as the “Action Plan for Grids ,” which identifies bureaucratic procedures as one of the major bottlenecks to achieving climate and industrial competitiveness goals. The document calls for simplifying processes, shortening timelines, and strengthening coordination between countries and administrations.
Furthermore, the Commission itself has presented a regulatory proposal to accelerate authorization procedures , with stricter maximum time limits for certain types of energy projects. The aim is to reduce energy costs, unlock investment, and prevent grid delays from becoming the Achilles' heel of the European green transition.
In this context, REE's demands fit into a broader debate about how to reconcile speed in infrastructure with environmental protection, citizen participation, and legal certainty. Regulators seek a balance between ensuring rigorous project analysis and preventing files from dragging on for years.
Spain: renewables on the rise and a grid under pressure
The permitting bottleneck comes at a time when Spain has established itself as one of the most dynamic renewable energy markets in Europe. According to Redeia, the Iberian Peninsula faces a unique opportunity to lead the energy transition thanks to its abundant wind and solar resources and the decisions made in previous years.
Currently, nearly 70% of the installed capacity in the Spanish electricity system already corresponds to renewable technologies. By 2025, around 55% of electricity demand was met by this type of generation, reflecting sustained progress towards a more decarbonized model that is less dependent on fossil fuels.
The quality of the transport infrastructure and the operation of the system has allowed for the integration of approximately the 97% of available renewable energyThis figure is often cited by REE as an example of the technical robustness of the Spanish grid. For the company, this data demonstrates that the upgrades carried out in recent years have helped to utilize almost all the green energy production fed into the grid.
The rollout of renewable energy also has a direct impact on prices. García Merino pointed out that the average price of electricity in Spain It recently settled at around 65 euros per megawatt hour (MWh), one of the lowest levels in Europe. Countries like Germany recorded values close to 90 euros/MWh, which, according to the operator, sends a clear signal of competitiveness to the Iberian industrial sector.
All this process, however, takes place on a network that is beginning to show tensions at certain key nodes and corridors, especially where they coincide lots of new renewable generation and strong industrial demandThat is why it is so critical to accelerate the implementation of the planned infrastructure, without losing sight of environmental and social requirements.
As electrification increases in sectors such as transport, heating and cooling, and certain industrial processes, the need to strengthen and modernize the transmission network becomes more pressing. For industry stakeholders, the permitting process in the coming years could determine whether they capitalize on their current competitive advantage or fall behind other European countries.
Everything suggests that the biggest challenge for Spain and the European Union is not so much designing new infrastructure or finding financing, but rather unblocking the permitting bottleneck in the electricity grid so that projects can move from the planning stage to implementation in a reasonable timeframe. The balance between administrative efficiency, environmental protection, and citizen participation will be key to ensuring that grid investments keep pace with renewable energy and electrification, while simultaneously maintaining security of supply and economic competitiveness.
