The energy transition in Spain, in graphs

The second decade of the 21st century has been a shake-up for the electricity generation and consumption sector. The pandemic and the outbreak of the war in Ukraine turned energy prices and markets upside down. Both events have been two accelerators that have joined the already pre-imposed challenge of decarbonising consumption and industry in order to improve efficiency and competitive independence.

Spain, due to its seasonal characteristics (wind, sun and hydraulic generation capacity), has become one of the European powers in recent years, largely leading the electrification of its domestic and industrial economy. Data from the Association of Renewable Energy Companies (APPA), in its latest report, shows how the installation of electrical self-consumption systems in homes and in industry has skyrocketed. In 2022, a particularly critical year in terms of energy after the start of the Russian invasion of Ukraine, 23,096 industrial self-consumption installations were carried out in Spain, in 2019 there were 3,418, an increase of 675%. In that same period of time, on the residential level, the APPA counted, in 2022, around 217,248 installations, compared to 4,328 in 2019.

Although self-consumption is a significant step forward, in macro terms Spain has also boosted its electricity generation. The total percentage of energy from renewable resources stood at 24.8% in 2023, an increase of seven points compared to 2019 and around ten more than a decade ago. This translates into a considerable reduction in greenhouse gas emissions, such as carbon dioxide, which the National Institute of Statistics publishes regularly.

By sector, this progressive electrification is uneven. While in transport it accounts for 11.9% of the energy used in consumption, compared to 21% in the refrigeration sector (cold/heat) or 56% of the energy produced for general consumption. The percentages, in any case, show an upward trend that will necessarily lead to a certain need to remodel the Spanish electrical system in order to adapt to the new volume of demand.

In this sense, investment in R&D+i is seen as another of the central challenges of the Spanish economy, which will only be able to maintain its leading position in the fight against the climate challenge through investment in research and specialised technical training. At the same time, the new ecosystem of services, such as large data centres (which require a large consumption of water and electricity) or new investments by multinational automotive companies, which intend to install new battery and electric car plants in Spain, make it necessary to adapt regulations to the new context in order to provide an environment of regulatory stability that allows the safe and productive development of new investments.