Spain Solar Energy Market Size
| Study Period | 2019- 2029 |
| Base Year For Estimation | 2023 |
| Market Volume (2024) | 34.49 gigawatt |
| Market Volume (2029) | 72.32 gigawatt |
| CAGR (2024 - 2029) | 15.96 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Spain Solar Energy Market Analysis
The Spain Solar Energy Market size in terms of installed base is expected to grow from 34.49 gigawatt in 2024 to 72.32 gigawatt by 2029, at a CAGR of 15.96% during the forecast period (2024-2029).
- Over the medium period, supportive government policies to promote renewable power generation and the declining cost of Solar PV installations are expected to be some of the driving factors for the solar energy market in Spain during the forecast period.
- On the other hand, the increasing adoption of alternate renewable sources such as hydropower, wind and limited grid infrastructure and storage systems are expected to hinder the market growth during the forecast period.
- Nevertheless, with the introduction of the National Energy and Climate Plan for 2021-2030, the government aims to increase the renewable energy share to 42% by 2030. This is expected to create opportunities for solar power companies over the coming years.
Spain Solar Energy Market Trends
Solar Photovoltaic (PV) Type to Dominate the Market
- Solar photovoltaic (PV) technology is expected to account for renewables’ most considerable annual capacity additions, well above wind and hydro as well. The solar PV market cut costs dramatically in the past six years as it was flooded with equipment. The cost of solar panels also dropped exponentially, leading to increased solar PV system installations.
- In June 2023, Spain's Ministry for the Ecological Transition and Demographic Challenge (MITECO) published a revised draft of the National Integrated Energy and Climate Plan (PNIEC) with a target of reducing Greenhouse Gas (GHG) emissions by 32% compared to 1990 surpassing the previous goal of 23%. To meet these targets, the new energy strategy outlines a plan to have 76 GW of solar photovoltaic installed capacity by 2030, including 19 GW for self-consumption.
- Various Investments to increase the solar PV capacity propels the country’s solar market growth. The European Investment Bank (EIB) is bolstering solar initiatives in Spain with a significant loan agreement totaling EUR 80 million (USD 86.54 million). The EIB signed the loan with global energy company Cepsa to facilitate the construction of two solar PV plants in Andalusia, adding 227MW of electricity to the grid. The investment aligns with the European Union’s cohesion objectives, addressing regional inequalities by deploying more than 227MW of capacity in regions with lower per capita income.
- On February 10, 2024, the Norwegian power company Statkraft received consent from the Spanish Ministry for the Ecological Transition (MITECO) to build a 228-megawatt capacity solar farm in Murcia, Spain. The company plans to invest around USD 161.8 million in the project named Fausita Solar. This will be the company’s first renewable energy project in Murcia and one of its largest solar farms in Spain. The commissioning of the plant is expected to take place in 2026.
- Similarly, In January 2024, Ethical Power Spain was awarded the EPC contract for two photovoltaic projects in Malaga, Spain., owned by Korkia. The two projects have a total capacity of 9MW and are located next to each other in the province.
- With large solar power projects lined up to achieve the aim of 31 GW by the end of 2030, the growth of the solar photovoltaic market in Spain is expected to witness significant growth during the forecast period.
- According to the International Renewable Energy Agency (IRENA), the Solar Energy Installed Capacity increased by 28.1 % in 2022 compared to 2021; the increase is due to new projects started in the past year. This number is likely to increase in the upcoming years during the forecast period.
- Thus, with such ongoing developments and capacity additions supported by favorable government policies, the solar PV segment is expected to dominate the market during the forecast period.
Supportive Government Policies and Targets Driving the Market Demand
- Spain is a prominent consumer of renewable electricity worldwide and a significant contributor to the growth of renewable energy capacity worldwide. The country's market for renewable energy capacity additions is one of the largest globally. Spain is ranked third within the European Union, just behind Germany and France, in terms of its renewable energy sector.
- The Spanish government is promoting renewable energy for several reasons. Firstly, it is committed to reducing the country's dependence on fossil fuels and increasing its share of renewable energy in the energy mix. In June 2023, Spain raised its targeted 2030 reduction of greenhouse gas emissions to 32%, up from a previous goal of 23%, due largely to a rise in expectations on how much solar PV can be built out by the decade’s end. Spain's revised plans for renewables point to a massive 56GW deployment of solar from 2023 to the end of the decade. Secondly, promoting renewable energy aligns with Spain's commitment to the European Union's Renewable Energy Directive, which sets a binding target for the EU to achieve a 42.5% share of renewable energy in final energy consumption by 2030.
- In February 2024, According to Spain's minister of ecological transition, the government submitted a new incentive scheme to public consultation. It is designed to support the development of a clean energy technology supply chain in the country. The authorities have launched the project for the first call for subsidies for energy transition equipment production, with a budget of USD 1.24 billion. Backed by funds from the Plan for Recovery, Transformation, and Resilience (PRTR), the scheme is expected to support the production of equipment and essential components of photovoltaic panels, batteries, wind turbines, heat pumps, and electrolyzers.
- As of 2022, the Spanish PV sector had no public aid or regulated remuneration systems. All new power was built leveraging the PPAs or with exposure to the market (merchant). Spain was the leading European market in PPAs in 2020. However, according to SolarPower Europe, Spain is expected to have a total installed solar PV capacity of 29.0 GW by 2024 in the medium scenario, thus making it the second-largest solar market in Europe. In this process, corporate sourcing, Power Purchase Agreements (PPAs), RES auctions, grid access regulatory framework, and self-consumption will play a vital role in the development.
- The Spanish government has taken bold steps, like the formation of the Strategic Energy Technology Plan and the Low Emission Strategy 2050, which have made the nation a global leader in the renewable market and reduced its carbon footprint at an astonishing rate.
- According to the International Renewable Energy Agency (IRENA), in 2022, the Renewable Energy Capacity increased by 9.5 % compared to 2021; the increase is due to new projects started and Supportive Government Policies implemented in the region during the past year. This number is likely to increase in the upcoming years during the forecast period.
- Therefore, with the increasing adoption of renewable energy and the development of financial incentives for solar plants, the market under study is expected to witness positive growth during the forecast period.
Spain Solar Energy Industry Overview
Spain's solar energy market is semi-fragmented. Some of the major players in the market (in no particular order) include Acciona SA, Iberdrola SA, The Red Eléctrica Group, COBRA Group, and Solaria Energia y Medio Ambiente SA., among others.
Spain Solar Energy Market Leaders
The Red Eléctrica Group
COBRA Group
Solaria Energia y Medio Ambiente SA
Acciona S.A.
Iberdrola S.A.
*Disclaimer: Major Players sorted in no particular order
Spain Solar Energy Market News
- February 2024: TotalEnergies SE announced that it concluded a deal with Synergia to acquire the 59 MW Dehesa Nueva del Rey solar PV project in Toledo province. Located in the town of Sesena, the project was to have over 95,000 solar PV panels and will be capable of meeting the energy demand of over 33,000 homes annually.
- December 2023: MET Group announced that the company’s first solar projects in Spain had started commercial operations. The Puerto Real 3 project is spread across an area of 130 hectares, which includes over 88,000 solar panels. The project installed capacity of 50 MW and is located in the Andalusia region.
Spain Solar Energy Market Report - Table of Contents
1. INTRODUCTION
1.1 Scope of the Study
1.2 Market Definition
1.3 Study Assumptions
2. EXECUTIVE SUMMARY
3. RESEARCH METHODOLOGY
4. MARKET OVERVIEW
4.1 Introduction
4.2 Solar Energy Installed Capacity and Forecast, till 2029
4.3 Renewable Energy Mix, 2023
4.4 Recent Trends and Developments
4.5 Government Policies and Regulations
4.6 Market Dynamics
4.6.1 Drivers
4.6.1.1 Declining Cost Of Solar PV Installations
4.6.1.2 Supportive Government Policies For Renewable Energy
4.6.2 Restraints
4.6.2.1 Penetration Of Other Energy Sources
4.7 Supply Chain Analysis
4.8 PESTLE Analysis
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Solar Photovoltaic (PV)
5.1.2 Concentrated Solar Power (CSP)
5.2 Deployment Type
5.2.1 Rooftop
5.2.2 Ground-mounted
6. COMPETITIVE LANDSCAPE
6.1 Mergers and Acquisitions, Joint Ventures, Collaborations, and Agreements
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Acciona SA
6.3.2 COBRA Group
6.3.3 Iberdrola SA
6.3.4 Solaria Energia y Medio Ambiente SA
6.3.5 JinkoSolar Holding Co. Ltd.
6.3.6 The Red Electrica Group
6.3.7 Repsol SA
6.3.8 Engie SA
6.3.9 Soltec Energias Renovables SL
6.3.10 Gransolar Group
- *List Not Exhaustive
6.4 Market Ranking Analysis
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Supportive Government Policies
Spain Solar Energy Industry Segmentation
Solar energy uses the sun's radiant light and heat to generate electricity, thermal energy (including solar water heating), and solar architecture.
The Spain solar energy market is segmented by type, and deployment type. By type, the market is segmented into solar photovoltaic (PV) and concentrated solar power (CSP), by deployment type, the market is segmented into rooftop and ground-mounted.
For each segment, the market sizing and forecasts have been done based on installed capacity.
| Type | |
| Solar Photovoltaic (PV) | |
| Concentrated Solar Power (CSP) |
| Deployment Type | |
| Rooftop | |
| Ground-mounted |
Spain Solar Energy Market Research FAQs
How big is the Spain Solar Energy Market?
The Spain Solar Energy Market size is expected to reach 34.49 gigawatt in 2024 and grow at a CAGR of 15.96% to reach 72.32 gigawatt by 2029.
What is the current Spain Solar Energy Market size?
In 2024, the Spain Solar Energy Market size is expected to reach 34.49 gigawatt.
Who are the key players in Spain Solar Energy Market?
The Red Eléctrica Group, COBRA Group, Solaria Energia y Medio Ambiente SA, Acciona S.A. and Iberdrola S.A. are the major companies operating in the Spain Solar Energy Market.
What years does this Spain Solar Energy Market cover, and what was the market size in 2023?
In 2023, the Spain Solar Energy Market size was estimated at 28.99 gigawatt. The report covers the Spain Solar Energy Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Spain Solar Energy Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Solar Energy in Spain Industry Report
Statistics for the 2024 Solar Energy in Spain market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Solar Energy in Spain analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
