Spain Set to Generate More than 50% of Its Power From Renewables

(Bloomberg) -- Spain is on track to become the first country among Europe’s big five economies to generate more than 50% of its electricity from renewable sources, according to a forecast by Rystad Energy.

The Mediterranean nation is set to consolidate its leadership in the green energy sector, leveraging substantial investments it made in the last decade. That allowed early deployment of onshore wind, which now accounts for more than 20% of its power output, which has been paired more recently with the development of photovoltaic solar, the Oslo-based research firm said. 

The push is in line with the targets set by the government, which aims to increase the share of green power in electricity generation to 74% by 2030, and will allow Spain to exceed the 50% average this year, ahead of France, Germany, Italy and the UK.

The country has also managed to reduce its reliance on fossil fuels. With natural gas as the main source of its fuel-powered output, Spain “has made remarkable progress in phasing out coal-fired generation,” according to Rystad senior analyst Fabian Ronningen. 

Fossil fuel-based output, however, increased in 2022 following the government’s decision to introduce a cap on the price of natural gas used to generate power. That widened the cost differential with France, boosting Spanish exports to the neighboring country, which was also hit by a decrease in its renewable output.  

Continuous power exports to France “could disrupt further growth” of renewables this year, according to Ronningen. Still, the transition from net energy importer to net exporter means that Spain is becoming “a key player in the global energy market,” he said. 

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