Spain’s Renewable Energy Revolution is set to redefine Europe’s energy scene. Poised to overshadow other major European economies, Spain forecasts drawing more than 50% of its electricity from renewable resources, as reported by Rystad Energy. This milestone signifies Spain’s pioneering role in the sustainable future race.
Pioneering Renewable Energy: Spain’s Success Story
For the past ten years, Spain has directed considerable investments towards the enhancement of its renewable energy infrastructure. This has propelled Spain onto the global stage as an exemplar in green energy. The early establishment of onshore wind power has been instrumental in this journey, contributing to over 20 percent of Spain’s total electricity production. Moreover, the rise of photovoltaic solar technology in recent years has supplemented Spain’s green energy capabilities, further strengthening its global standing.
Setting an Exemplary Renewable Standard
The ambitious targets set by the Spanish government have played a crucial role in fuelling Spain’s renewable energy revolution. Aiming to boost the proportion of renewable energy to a whopping 74 percent by 2030, Spain has laid down a roadmap for other European nations to follow. With the country on course to exceed the 50 percent renewable energy threshold this year, Spain finds itself ahead of notable European peers including France, Germany, Italy, and the UK.
Spain’s Energy Transition: Overcoming Hurdles
Spain’s successful elimination of coal-powered generation has led to natural gas becoming its primary source of energy. This change has resulted in a significant contraction of Spain’s carbon emissions. However, the journey has not been devoid of challenges. In 2022, a governmental decision to limit the price of natural gas for power generation caused a brief surge in fossil fuel-based output. While this move augmented Spanish exports to neighbouring France, it raised apprehensions about potential obstacles to the expansion of renewables.
Despite potential hindrances, Spain’s metamorphosis from a net energy importer to a net exporter has spotlighted the country as an influential entity in the global energy market Bloomberg. This evolving position opens doors for further collaborations and strategic partnerships within the renewable energy industry.
European Union’s Climate Ambitions
Spain’s remarkable achievement lends further momentum to the European Union’s determination to mitigate climate change and curtail its reliance on Russian fossil fuels. A recent provisional agreement between the European Parliament and the Council signals an elevation in the EU’s renewable energy objectives. By 2030, the EU aspires to derive 42.5 percent, and possibly up to 45 percent, of its energy from renewable sources.
Joint efforts by EU member states are critical to achieving the bloc’s climate goals, which include a binding commitment to slash net greenhouse gas emissions by 55 percent by 2030. The European Commission estimates a further investment of €113 billion ($123 billion) in renewable energy and hydrogen infrastructure will be required by 2030 to fulfil these ambitious objectives. This sizeable investment is anticipated to expedite the energy transition, spawn new employment opportunities, and reinforce Europe’s leadership in the clean energy sector.
Feel free to contact the Energy Transition Centre today with questions.
· Julius Moerder, Head of Energy Transition Centre julius.moerder@centurionlg.com
· Oneyka Ojogbo, Head of Energy Transition Centre, Nigeria & West Africa oneyka.ojogbo@centurionlg.com
· Leon van Der Merwe, Head of Energy Transition Centre, South Africa leon.vdmerwe@centurionlg.com
Author: Memoona Tawfiq
