Renewable energy accounted for 38.5 percent of Spain’s total electricity generation in October, up from 37.2 percent in September, according to the latest estimates released by Spanish grid operator REE.
Spain's Renewable Energy Generation in October
REE said renewable energy plant production rose 6.8% year-on-year to 8,520 GWh in October. Wind and solar farm production also increased, up 17.5% and 12.9%, respectively, compared to the same period last year. However, hydroelectric production continued to decline due to a lack of precipitation. Spain’s total electricity demand fell 3.4% year-over-year to 19,505 GWh in October.
Spain's November Renewable Energy Tender
In November, Spain will launch the 3.3 GW renewable energy tender. In October, a tender for 520 MW of renewable energy was launched. The Ministry for the Ecological Transition and the Demographic Challenge plans to launch the tender for renewable energy capacity on November 22, 2022. The total investment in this tender is expected to reach 2.9 billion euros. It involves a 12-year subsidy scheme. The winning bidder will receive 1.8 GW of solar capacity and 1.5 GW of onshore wind capacity.
Spain's Renewable Energy Future
Spain and Portugal have the potential to become European energy powerhouses, according to a study by Rystad Energy. The Iberian Peninsula reportedly has significant renewable energy potential.
It has natural gas supplies from North Africa. In addition, electricity prices in Spain and Portugal are lower than in other European countries. In August, the average price of electricity in Spain was 155 euros/MWh, compared to two to three times higher in other European countries. Through long-term power purchase agreements (PPAs), energy in Spain is expected to be much cheaper than in France and Germany. Spain’s 2024 contracts currently trade at €113/MWh, more than half the French price of €270/MWh.
In the first three quarters of 2022, Spain is the third largest energy exporter in Europe, behind Sweden and Germany. Power generation in the region is expected to grow strongly this year and to maintain sustained growth in the coming years. This is largely driven by a massive expansion in renewable energy.
The share of renewable energy in the energy mix of the Iberian Peninsula will increase from 48% in 2021 to 64% in 2025 and 79% in 2030. This will put the region at the forefront of Europe’s energy transition.
The Iberian Peninsula currently has more than 50 GW of installed renewable energy capacity, with onshore wind power accounting for more than 60%. Solar power has increased in recent years and is expected to rise significantly. It is planned that solar photovoltaic installations will overtake onshore wind and will account for more than half of the region’s renewable energy by 2030.