Spain's Renewable Energy Surge and Major Chinese Investment Amid Political Uncertainty
In 2023, renewables supplied 57% of Spain's electricity, a significant increase from about 33% in 2017. The Spanish government aims for renewables to provide 81% by 2030, reflecting a strong shift towards clean energy.
A landmark development is a €4 billion electric vehicle battery factory near Figueruelas, Aragón, a joint investment by Chinese company CATL and Stellantis. Construction began last month and is expected to bring around 2,000 Chinese workers to the small town of about 1,000 residents. The project could generate up to 35,000 indirect jobs and revitalise the local economy. Yao Jing described this investment as one of the biggest Chinese investments in Europe.
On 28 April, a blackout lasting several hours affected Spain and Portugal; investigations are ongoing. However, Red Eléctrica, the grid operator, stated that the outage was not caused by renewable energy sources. The cause is linked to an unknown event involving voltage oscillations, and cyber-attacks have been ruled out. Notably, a week before the blackout, solar power reached a record 61.5% of Spain's mainland electricity, intensifying debates on energy transition.
Spain plans to close five nuclear plants between 2027 and 2035, though owners of the Almaraz plant are seeking a 2030 extension. Industry experts advocate for a stable energy mix of renewables and nuclear power. The Iberian Peninsula's electricity grid remains relatively isolated from the broader EU grid, with grid storage capabilities identified as a weakness that requires expansion.
Amid these energy developments, Spain's political landscape is uncertain. A Socialist-led coalition government is facing corruption scandals that could trigger snap elections. A likely right-wing government might deprioritize renewable energy initiatives, adding political complexity to the country's energy future.
