An new wave of investments in renewable energies will arrive in Spain over the next few years, in which Extremadura, Castile La Mancha and Andalusia will be key to capitalizing on these opportunities. Favorable climate conditions, coupled with a series of recent policies, have made these regions the main focus for photovoltaic energy projects throughout the country.
From the peak of the Spanish energy sector in 2008, driven by the Zapatero government, to the 2012 reform under then Energy Minister José Manuel Soria, which cut subsidies retroactively, there have been notable advances in renewable energy technology and markets.
In these recent years of "paralysis", the global landscape has changed radically. Photovoltaics has seen a drastic drop in solar panel prices and a continuous improvement in their performance. As a result, the Photovoltaic solar energy has reduced its costs by more than 80%This has led to a substantial increase in investments in countries such as the United States and China, and Spain has been no exception.
Projects without the need for premiums
Thanks to improvements in costs and performance, in the South of Spain, photovoltaic projects are being developed without the need for public subsidies. In the past decade, some photovoltaic plants were located in areas with less solar radiation, such as Navarra or Galicia. Although this was a pioneering push towards renewable energies, profitability was limited due to the inappropriate choice of locations.
Currently, investments are clearly focused on areas with highest solar radiation index, such as Andalusia, where the efficiency of photovoltaic parks is significantly higher. According to Alfonso Vargas, president of Claner, “Photovoltaic development must take place in the south of the peninsula".
Premium-free experiments
The first photovoltaic project without subsidies was launched in 2016 with the Catalan cooperative Som Energía, in a solar plant located in Alcolea del RioWith an initial capacity of 2,15 MW, the plant served as an experiment in economic and energy success. Today, the region has given way to larger scale projects, which further boost this trend.
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Small-scale photovoltaic projects, such as the initial ones of Som Energía, have given way to large initiatives that seek Harnessing the energy potential of southern Spain.
Great initiatives in Andalusia
There are currently numerous operators that are processing projects to build photovoltaic plants that do not depend on government aid. One of the most prominent examples is the project Renopool, which has requested permits to build a plant with a capacity of 600 MW in Badajoz on a 2.200 hectare property.
In addition, in Andalusia, two major advances have been recorded. The first with Solar Conquest, a Dutch capital group that has acquired the rights to an Abengoa project in Seville to promote an 800 MW solar park. The second with Magtel, which is processing a series of solar parks that will total 1.450 MW.
Solar Conquest Projects
Abengoa had previously processed several projects with the Andalusian administration and the REE for the development of solar thermal plants in Seville. However, due to the 2012 reform, the projects were halted. Now, thanks to Solar ConquestThe rights acquired by Abengoa are being used to replace solar thermal technology with photovoltaic technology, which will allow it to reach 800 MW or more in installed capacity.
On its website, Conquista Solar points out that the new regulations of the electricity sector in Spain have created opportunities for projects without subsidies or public aid. The price of energy is now determined by the wholesale market, which allows Photovoltaic projects in Seville are profitable.
With the falling cost of solar components and high solar radiation in Andalusia, the group says solar projects in the area can be economically viable even without government support.
Magtel is also developing major projects, with solar parks that could exceed 1.000 million euros in investment and provide more than 1.000 additional MW to those already in process.
Structural problems in Andalusia
However, not everything is positive. Although Andalusia is key to the development of renewable energy in southern Europe, it faces serious challenges, especially related to the lack of electrical infrastructure adequate.
Alfonso Vargas, president of Claner, has pointed out that there is a imbalance in certain provinces such as Almería, Jaén and Granada. The lack of infrastructure, such as the Caparacena-Baza-La Ribina axis, has delayed the expansion of solar projects, since without adequate evacuation lines, the energy generated cannot be distributed efficiently.
These types of problems put at risk the development of the large projects that Andalusia needs to become a leader in renewable energy.
Prospects for the future
Despite the challenges, the Evolution of photovoltaics in Andalusia is promising. According to official data from the Andalusian Energy Agency, in 2023 Spain managed to install 1.605 new renewable megawatts in Andalusia, which mobilized investments worth 1.625 millones de euros and generated around 4.800 jobs. Andalusia already has 11.803 MW of installed renewable capacity, an increase of 16% over the previous year.
La Photovoltaic solar energy accounts for 53% of total capacity, with more than 6.207 MW, which reaffirms the importance of this technology for the energy future of the region. Wind energy accounts for 3.637 MW, representing 31% of the total, while solar thermal reaches 997,4 MW (8%).
Andalusia remains leader in solar thermal energy, with more than 1.167.000 square metres of installed surface area for the supply of hot water and air conditioning, and is also a pioneer in biomass installations, with more than 28.300 installations in use.
Looking ahead to the coming years, it will be crucial for the community to be prepared to overcome its infrastructure challenges while continuing to lead in the adoption of clean and sustainable technologies.