Why Renewable Energy Will Power 70% of Spain’s Electricity by 2030
Spain has been one of the leading countries in Europe that are pushing the transformative agenda of reducing carbon dioxide emissions by increasing the use of renewable energy sources.
In trying to fulfill the goal of a green economy, Spain has forecasted to increase solar energy production to a capacity of 47.1 TWh by 2030, becoming the country’s biggest energy resource, followed by wind power (31 TWh), cycle plants (24.5 TWh), hydropower (23 TWh), and lastly nuclear power (7.1 TWh). This effectively means that the country energy consumption will be powered by about 70% renewable energy.
According to Spain’s Industry Ministry, this will also result in savings of around €9.6 billion based on the current trajectory of renewable energy growth in the country. The current growth in the renewable energy market in the country is partly driven by the sharp decline in solar panels while lower construction costs in the property market have allowed developers to embrace the use of renewable energy sources to power up the housing market.
This has also resulted in a knock-on effect on the property market which according to recent reports has experienced a massive growth with foreign investors also driving growth. Statistically, renewable energy sources like solar result in huge cost savings once fully installed. This has helped construction companies using renewable energy to power their machinery to cut construction costs.
This past March, Spain’s largest power company, Iberdrola, launched a solar project in March with a capacity of 425 megawatts while in April, “Spanish renewable energy firm Cox Energy signed a deal for the construction of 495 megawatts of capacity in Spain, and another 165 megawatts in neighboring Portugal, in a €400 million investment,” reports The Olive Press.
Clearly, this shows that the main players in this campaign are fully committed to putting Spain in the frontline of the fight against global warming. Generally, residents too will play a part in embracing the use of renewable energy sources, and as it has been demonstrated in several parts of the world, household green energy can be crucial in driving the growth of the renewable energy sector.
Currently, if a person wanted to buy property in Murcia, Spain, they would find that one of the most commonly highlighted features is a renewable energy source, especially solar. Reports also indicate that most property buyers make this a requirement before they can consider investing in a residential house. This ties up well with the goal of powering the country with at least 70% renewable energy in the next decade or so.
In addition, Spain’s wind power sector continues to improve following a recent series of mergers of companies operating in the renewable energy market, as well as, several tenders placed to boost growth in the country.
According to a report published by Phys.org, Spain’s Basque-based wind power company, Gamesa merged with Germany's Siemens in 2017. This puts it in a strong position to rival locally-based Iberdrola, which as reported earlier in this write-up launched a solar project with a capacity of 425 megawatts.
And while Spain currently ranks only fifth in the world in terms of wind power production capacity, the industry is expected to grow significantly in the country by the year 2020 to rival reading wind power producers like Germany. The wind power sector is expected to invest 5.0 billion euros ($6.0 billion) in Spain by 2020, according to the Spanish Wind Energy Association (AEE).
In summary, country’s like Germany and the Scandinavia region may continue to make headlines in the renewable energy market. However, Spain and several others are emerging as some of the most promising players in the green energy campaign.
In Spain, government parastatals, top renewable energy companies, and the public, in general, appear to have embraced renewable energy sources. This will serve the country’s goal of powering its electricity with 70% green energy well going into the next decade.
Nick is the editor of CAGRValue.com a growth investing focused blog, which discusses emerging industry trends and the best growth opportunities in the market. Follow our latest guides on Investing in general, and especially Growth Investing. Opinions expressed here are my own and do NOT represent an investment advice or recommendation.