Spain

This framework is composed of four key initiatives, some of which have been updated in 2024:

• Integrated National Energy and Climate Plan 2023-2030 (INECP). The current plan was published in September 2024 after a long consultation process, and it is an update of the previous one launched in 2021, taking into consideration the increased climate-fight ambitions at the European level, as reflected in the European Climate Law, Fit for 55, and REPower EU targets. However, it also includes targets from the latest European initiatives, such as the Net Zero Industry Act and the Critical Raw Materials Act. The new INECP sets even more ambitious targets for renewable energy penetration and greenhouse gas (GHG) emission reductions. One of the most important elements of this plan is the central role that photovoltaic technology is planned to play in the energy transition, with an installed capacity for solar photovoltaic of 76.3 GW by 2030, doubling the initial 39 GW, accompanied by a strong development of energy storage, with a capacity of 22.5 GW.
• Long-Term Decarbonisation Strategy 2050. This strategy is now under revision to adapt to the new targets and requirements set out in the INECP. The Spanish Government opened a public consultation at the end of 2024, which will close in January 2025.
• Law 7/2021, of 20 May, on Climate Change and Energy Transition, was passed in Spain in May 2021 with the aim of ensuring Spain’s compliance with the goals of the Paris Agreement, which obliges states to be neutral in emissions in the second half of the century.
• Just Transition Strategy & National Strategy against Energy Poverty were also updated. The Just Transition Strategy seeks to maximise the social benefits of the ecological transformation while mitigating its negative impacts. Currently, the Ministry for Ecological Transition and the Demographic Challenge (MITECO) has started the process of updating the National Strategy against Energy Poverty 2025-2030. This new strategy aims to advance the objective of achieving energy equity by consolidating structural measures to reduce energy poverty permanently and progressively over the medium and long term.

Other relevant initiatives that also form part of the Energy Transition Strategy include the following:

• The Self-consumption Roadmap: In October 2024, the Government launched a Royal Decree for public consultation that will update the regulatory framework for self-consumption.
• The Roadmap for the Sustainable Management of Mineral Raw Materials: The Council of Ministers, at the request of the Ministry for Ecological Transition and the Demographic Challenge, approved this Roadmap in 2022. It reinforces the strategic autonomy of the country and the security of supply of key raw materials for the energy transition and digital development.
• Planning of the Electricity Transmission Network 2021-2026: Updated in 2024. This Grid Planning is a key instrument for developing the electricity infrastructures needed to continue guaranteeing a secure supply and to drive the ecological transition process so that by 2026, renewable energies will account for 67% of the national electricity generation mix.

The current Integrated National Energy and Climate Plan 2023-2030 (INECP) was published in September 2024 after a long consulting process, and it is an update of the previous one launched in 2021, taking into consideration the increased climate-fight ambitions defined at European level, and also including targets from the latest European initiatives as Net Zero Industry Act and Critical Raw Materials Act.

The research and innovation policy is articulated through two main documents: the Spanish Science, Technology and Innovation Strategy 2021-2027 (EECTI), together with the State Plan for Scientific and Technical Research and Innovation 2024-2027 (PEICTI), launched in 2024 as the second part of the previous plan for the period 2021-2023, with the aim of implementing the EECTI and helping to achieve its objectives. The strategy prioritises and responds to the challenges of the national strategic sectors in specific areas that will be key to the transfer of knowledge and the promotion of R&D&I in the Spanish business domain, such as:

• Culture, creativity and inclusive society.
• Security for society.
• Digital world, industry, space and defence.
• Climate, energy and mobility.
• Food, bioeconomy, natural resources and environment.

Specifically for the year 2024, the budgetary planning for the granting of aid has been more than 6 billion EUR (similar to 2023). The Annual Action Programme establishes the budget allocated to each of the actions foreseen in the PEICTI. In this manner, 1.7 billion EUR have been specifically earmarked for those actions in which energy topics can be applied.

On top of that, in 2024, the Recovery and Resilience Plan had an overall budget of 18.5 billion EUR, out of which a budget of 9.6 billion EUR was allocated for actions related to the energy transition. Projects set to receive funding in 2024 Next Gen funds included the following topics: floating PV, energy communities, and initiatives to boost the manufacturing capacity of renewable components in Spain.

Next, projects related to the development of photovoltaic technology across all stages of the value chain are compiled, encompassing the main research and development Spanish and European calls.

Regarding the Public-Private Collaboration call, three projects were awarded, focusing on the extended lifetime of solar steel structures, lightweight PV modules, and thermal and hyperspectral imagery for detecting soiling.

In the call for Knowledge Generation, several projects related to the development of solar cell technology—ranging from silicon to perovskites, covering germanium—were approved for funding. Unfortunately, the Transmissions call saw no funded proposals related to recycling and sustainability of photovoltaic technology.

CDTI’s Research Project call funded two projects related to the management of communications and energy in the photovoltaic sector and an integral solution for the quality control of the pile driving in photovoltaic plants.

Finally, the EMPOWER project, with Spanish presence among the partners, was funded in the HORIZON-CL5-2024-D3-01-01: Alternative equipment and processes for advanced manufacturing of PV technologies call.

This includes the manufacturing of structures, power electronics, and trackers, despite financial challenges faced by key players in this last segment. Besides, the sector features numerous leading companies engaged in development, engineering, distribution, construction, and operation & maintenance.

In PV module manufacturing, several companies, including new entrants, produce modules, while others offer Building Integrated Photovoltaics (BIPV) solutions. Additionally, a relevant company specialises in producing technological equipment for PV module manufacturing. In 2023, PV-related full-time jobs were estimated to be slightly more than 121 000.

Last year, 2024, PV power installed capacity in Spain amounted to 7 517 MW (6 097 MW in utility scale, 1 387 MW in distributed PV, and 32 MW off-grid PV; data at the moment of writing the report, which will surely be revised throughout the year). These figures reflect a slower pace of deployment compared to 2023, when 6 940 MW and 2 020 MW of utility-scale and distributed PV, respectively, were installed.

Currently, Spain has 47 181 MW of accumulated capacity (37 417 MW of utility scale, 9 646 MW of distributed PV, and 119 MW off-grid PV). The planning process indicates substantial expansion for utility-scale PV plants, with over 36 705 MW of projects approved and ready for construction in the near future. This planned development highlights the industry’s robust pipeline and its crucial role in transitioning to a renewable energy future.

Regarding distributed PV in Spain, it is adapting to evolving market conditions. The end of COVID-era subsidy programmes, which significantly boosted installations during the pandemic, signals a shift towards a more market-driven approach.

In 2024, renewable energy generation in Spain, as estimated by Red Eléctrica, accounted for slightly over 55% of the national generation mix, thus recording a historical maximum of production, with PV covering 17% of the national energy demand. In 2024, the average electricity price in Spain was 62.90 €/MWh. No auction for PV electricity generation was held during 2024.

Spain’s robust PV industry, along with its supporting components, complemented by an abundant solar resource ideal for PV plant installations, can foster a powerful techno-economic ecosystem, promoting a sustainable, efficient, and profitable economy across Europe. Nevertheless, a slower-than-expected pace of electricity demand, a deceleration of the broader electrification process, sustainability and social acceptance issues, together with the increasingly frequent periods of negative prices experienced last year, remain challenging aspects hampering the deployment of this technology.