Spain's Renewable Energy Growth and Economic Impact of New EV Battery Factory
Renewable energy accounted for about 57% of Spain's electricity in 2024, with the government aiming to increase this to 81% by 2030. A significant project supporting this transition is the construction of a €4 billion electric vehicle (EV) battery factory near Figueruelas, Aragón. The factory, developed by CATL and Stellantis, was chosen for its abundant wind and sun resources, reflecting Spain's renewable-driven energy model and regional investment in Aragón.
The Figueruelas plant is expected to bring about 2,000 Chinese workers to the small town of 1,000 residents, potentially causing a local population surge, along with up to 35,000 indirect jobs linked to the project. This highlights the local and regional economic impact of Spain's energy transition.
Spain’s nuclear energy sector currently supplies around 20% of the country’s electricity. Five nuclear plants are planned to close between 2027 and 2035, though the owners of the Almaraz plant are seeking an extension to 2030. There is ongoing debate about maintaining a nuclear component to ensure energy stability.
The Iberian electricity grid is relatively isolated from the broader European grid, and expanding storage infrastructure is viewed as a key need to support the growing renewable share.
On 28 April, a significant blackout affected Spain and Portugal, prompting investigations. This occurred shortly after a record mainland solar share of 61.5% the previous week. Authorities have stated the outage was not caused by renewables but was due to an unknown system event involving voltage oscillations. A cyber-attack was ruled out.
Spain's political landscape also adds uncertainty to its renewable energy future. The Socialist-led coalition government faces corruption scandals and the possibility of a snap election. A potential right-wing government emerging from such an election might reduce emphasis on renewables.
