Renewable energy projects in Spain: leading Europe's green transition
Spain has emerged as a powerhouse in Europe’s renewable energy transition. With its abundant sunshine, consistent wind patterns, and strong government support, the country is building one of the most dynamic clean energy markets in the world. Renewable energy projects in Spain are helping to decarbonise the economy, create green jobs, and reduce reliance on fossil fuel imports.
We explore the current landscape of renewable energy in Spain, highlighting key projects, policy drivers, investment opportunities, and the outlook for the future.
Why is Spain a leader in renewable energy?
Spain is geographically and climatically well-positioned for renewable energy development. It receives high solar irradiance throughout most of the year, has significant wind potential across several regions, and possesses an extensive grid infrastructure that can support large-scale projects.
According to Spain’s Ministry for the Ecological Transition and the Demographic Challenge, over 50% of the country’s electricity in 2023 came from renewable sources. The Spanish National Energy and Climate Plan (NECP) sets an ambitious target: 74% of electricity generation from renewables by 2030 and climate neutrality by 2050.
Major renewable energy projects in Spain
Solar power installations
Spain is home to some of the largest and most advanced solar farms in Europe. The country’s leadership in solar photovoltaic (PV) energy is the result of favourable policies, falling technology costs, and strong developer interest.
Key projects include:
Francisco Pizarro Solar Plant (590 MW): Developed by Iberdrola in Extremadura, it is one of the largest solar plants in Europe, capable of powering over 375,000 homes.
Núñez de Balboa Solar Plant (500 MW): Also located in Extremadura, this project contributes significantly to Spain's solar capacity and showcases the region’s potential for utility-scale projects.
Andasol Solar Complex: A pioneering concentrated solar power (CSP) project that includes thermal storage, allowing for energy delivery even after sunset.
Spain’s southern and central regions—particularly Andalusia, Extremadura, and Castilla-La Mancha—are solar energy hotspots due to high irradiance levels and available land.
Wind energy developments
Wind power is another pillar of Spain’s renewable energy mix. The country is the second-largest producer of wind energy in Europe, following Germany. Spain has over 1,200 wind farms and more than 21,000 wind turbines in operation.
Key highlights:
Castilla y León leads the country in installed wind capacity, followed by Galicia and Aragón.
Reinosa Wind Project: A 300 MW onshore wind development in Cantabria is an example of new large-scale projects supporting regional growth.
Offshore wind pilot projects: Although Spain currently has no commercial offshore wind farms, the government has outlined plans for floating wind projects in the Canary Islands and the Mediterranean.
Spain's existing grid and manufacturing base for wind turbines also provide a strong foundation for continued growth in this sector.
Government incentives fuelling renewable energy growth
Spain's success in renewables has been largely driven by supportive government policies and regulatory reforms. Key incentive mechanisms include:
Renewable energy auctions: Competitive tenders allocate new capacity to developers at market-driven prices, ensuring cost-effectiveness and transparency.
Feed-in premiums: These support schemes provide stable revenue streams for renewable energy producers.
Grid access reform: Recent changes make it easier for new projects to obtain grid connection permits.
EU recovery funding: Spain has allocated part of its NextGenerationEU recovery funds to clean energy investments, including hydrogen and grid digitalisation.
Additionally, the Spanish NECP provides a long-term roadmap with clear targets for emissions reductions, energy efficiency, and renewable energy deployment.
Investment and private sector participation
Spain’s renewable energy market is attracting global investors, utilities, and corporate buyers. Companies such as Iberdrola, Acciona, EDP Renewables, and Enel Green Power are leading project development across solar and wind technologies.
Corporate power purchase agreements (PPAs) are becoming increasingly popular, allowing large energy consumers to buy green power directly from producers. Amazon, Microsoft, and other multinational firms have signed PPAs with Spanish developers, signalling the maturity and credibility of the market.
Banks and private equity firms are also playing a critical role in financing renewable projects. Spain’s stable regulatory environment and grid infrastructure make it a relatively low-risk market for clean energy investment.
Challenges facing renewable energy projects in Spain
Despite its progress, Spain faces several challenges in scaling up renewable energy deployment:
Grid congestion: In some regions, transmission networks are nearing capacity, making it difficult for new projects to connect.
Permitting delays: The approval process for new projects can be slow and complex, especially at the regional level.
Community opposition: Wind and solar projects can face resistance from local communities concerned about land use, noise, or visual impact.
Balancing supply and demand: As renewables grow, the need for flexible backup capacity and energy storage becomes more urgent.
Spain is actively addressing these issues by investing in grid upgrades, streamlining permitting, and supporting innovation in energy storage and demand-side response.
Spain’s green hydrogen revolution
Spain is positioning itself as a hub for green hydrogen, using renewable energy to produce hydrogen via electrolysis. Projects such as the Hydrogen Valley of Catalonia and the Green Hydrogen Hub in Andalusia aim to decarbonise industry and transport sectors.
The government’s Hydrogen Roadmap outlines a plan to reach 4 GW of electrolysis capacity by 2030. Supported by EU funds, green hydrogen is expected to play a key role in meeting climate goals and supporting economic recovery.
The future of renewable energy in Spain
The outlook for renewable energy projects in Spain is highly positive. By 2030, the country aims to reach:
39 GW of solar photovoltaic capacity
50 GW of wind energy capacity
Expanded energy storage and green hydrogen networks
Major digital upgrades to the national grid
As technologies improve and investment continues to flow, Spain is expected to remain a leader in the global energy transition. With its blend of public policy, private innovation, and natural advantage, the country offers a model for others to follow.
Renewable energy projects in Spain are at the forefront of the global shift to clean power. From massive solar farms in Extremadura to wind turbines in Galicia, Spain is proving that ambition, policy, and investment can drive rapid and sustainable energy transformation. As it accelerates toward its 2030 and 2050 climate goals, Spain stands out as a renewable energy success story—and a blueprint for the future of power generation.
