The Future of Energy in Spain
The transition to renewable energy in Spain has been a continuous and accelerated process in recent decades. With the aim of reducing dependence on fossil fuels and minimising greenhouse gas emissions, the country has invested significantly in clean energy sources.
In 2025, Spain is in a prominent position in the European energy landscape, consolidating its commitment to sustainability and innovation.
Renewable Energy Installed Capacity Growth
According to the OBS Business School report, renewable energy production in Spain is expected to exceed 149 TWh by 2025, representing 56% of the national energy mix. This increase is mainly due to the boom in wind energy and photovoltaic solar energy. Wind energy leads with a share of 23%, while solar photovoltaic energy has climbed to third place, surpassing combined cycle, with a record production of 45 TWh.
Solar Energy: A Fundamental Pillar
Solar PV has experienced remarkable growth in recent years. It is estimated that by 2025, installed capacity will reach between 28 and 30 GW, doubling the current capacity. This growth will position solar energy as the second most important renewable energy source in the Spanish electricity mix, surpassed only by wind power. Solar energy is expected to cover between 15% and 18% of the country's electricity demand, further consolidating its role in the transition to a clean energy matrix.
Wind Energy: Maintaining Leadership
Wind energy continues to be the main source of electricity generation in Spain. In 2025, wind power is expected to continue to lead the national energy mix, reflecting the country's commitment to sustainability and decarbonisation.
Green Hydrogen: The Next Frontier
Green hydrogen is emerging as one of Spain's main bets for its energy future. Produced by electrolysis of water using renewable energy, green hydrogen has the potential to decarbonise industrial and transport sectors that are difficult to electrify. Companies such as Iberdrola are leading projects in this field, with operational plants in Puertollano and Barcelona, and expansion plans in other regions.
Investment and Project Highlights
Major energy companies are making significant investments in renewable energy projects in Spain. Repsol, for example, has announced an investment of more than €800 million in a green methanol plant in Tarragona, which will transform up to 400,000 tonnes of municipal solid waste annually into renewable fuels and circular products. This project has the potential to save 3.4 million tonnes of CO₂ emissions in its first decade of operation.
Challenges and Opportunities
Despite progress, Spain faces challenges in integrating renewables into its electricity grid. The need to modernise grid infrastructure, improve storage capacity and manage the intermittency of sources such as solar and wind are key issues to be addressed. However, these challenges also represent opportunities for technological innovation and job creation in emerging sectors.
Conclusion
In short, renewables are shaping Spain's energy future. With sustained growth in installed wind and solar PV capacity, and increasing investment in green hydrogen, the country is moving towards a more sustainable and resilient energy matrix. Collaboration between the public and private sector, together with the commitment of society, will be essential to consolidate these advances and face the challenges that lie ahead on the road to the energy transition.
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