Electricity: How is it produced in Spain?

We take a look at the “Electricity System Report 2022” presented by Red Eléctrica to learn how electricity is generated in Spain

Over the past few months, Spain has witnessed a flurry of records in renewable electricity generation, with record-breaking wind and solar photovoltaic production reaching 61,176 GWh and 27,864 GWh respectively. These milestones are not accidental; they are the result of a resurgence in renewable energy investment in Spain, leading to a greater contribution of green energy to the Spanish electricity grid. Thus, coinciding with the publication of the “2022 Electricity System Report” by Red Eléctrica, we ask ourselves a question we would like to answer today: how is electricity produced in Spain? The answer is as varied as it is fascinating; let’s explore it!

The first thing we need to understand is that Spain is a country whose energy balance is, or has traditionally been, positive. The Iberian Peninsula, with a few minor exceptions, is a goldmine in terms of hydrocarbons; an energy resource that has been and continues to be fundamental for consumption in vehicle and freight transport, electricity generation, home heating, and so on. This disadvantageous situation led to a veritable boom in renewables during the first decade of the 2000s, which put Spain at the forefront of the global green energy markets. However, this situation was reversed by the economic crisis of the second decade of the 2000s and a series of laws that penalized investment in renewables.

The resurgence of renewable electricity in Spain

Electricity in Spain and installed capacity structure. Source: Red Eléctrica

Yet,The third decade of this century seems to have forcefully returned the country to its role as a key market in renewable energy.The electricity sector in Spain has experienced four consecutive years of growth. In 2022 alone, Spain saw a 9.1% increase in its installed renewable energy capacity (an additional 5,899 MW), meaning that 59.2% of the country’s electricity generation capacity is now renewable; a significant milestone that aligns with the European Commission’s “RepowerEU” plan.

Evolution of installed renewable energy capacity in Spain. Source: Red Eléctrica

This increase in installed renewable capacity is explained by the contribution of solar photovoltaic power over the past year, which has increased its capacity by 4,498 MW, representing 76.3% of the new capacity and achieving the largest historical increase for this type of electricity generation source. This milestone has overtaken hydropower and allowed photovoltaics to become the third largest source of generation in Spain’s electricity mix, with 16.6% of total installed capacity. Wind power has contributed an additional 1,400 MW of renewables, maintaining its position as themain source of renewable energy generationof the national park with 25.2% of the total.

What is the situation of renewable energy at an international level?

As the previous chart shows, Norway stands out as the country with the highest contribution of renewables to its installed electricity generation capacity, at 98.6%. Among the most populated countries in Europe, Germany leads with 65%, followed by Spain with 62.5%.