Spain Advances Renewable Energy and EV Battery Production Amidst Energy Policy Debates
A €4 billion electric vehicle battery factory is set to be built in Figueruelas, Aragón, by CATL and Stellantis, bringing an estimated 2,000 Chinese workers and up to 35,000 indirect jobs.
This development aligns with Spain's broader energy strategy, which has seen renewables account for 57% of electricity production in the most recent reported year. The government aims to increase this to 81% by 2030, leveraging local wind and solar resources.
The project in Figueruelas is presented as a validation of Spain’s renewables-led energy model. Despite a nationwide blackout across Spain and Portugal on 28 April, which sparked debate about renewables, authorities have stated that the outage was not linked to renewables and found no evidence of any cyber-attack. Notably, solar generation had reached a record 61.5% of mainland Spain's electricity mix shortly before the blackout.
Spain's nuclear sector currently contributes around 20% of electricity, but it plans to close five nuclear plants between 2027 and 2035. The Almaraz nuclear plant is seeking a three-year extension to operate until 2030.
There is political debate around maintaining a balanced energy mix. Opposition parties and some industry voices advocate for combining renewables with nuclear energy to ensure stability, while Vox criticizes the reliability of the green agenda.
Challenges remain, including issues related to energy storage, grid integration, and the Iberian Peninsula's partial grid isolation from the EU. An increase in gas use since April also influences energy planning.
Additionally, political uncertainty persists due to the Socialist coalition government’s situation and potential snap elections, which could impact future energy policies and the focus on renewables.
