Spain Solar Energy Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR (2024 - 2029) | 15.96 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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 of the solar energy market in Spain.
- On the other hand, the increasing adoption of alternate renewable sources such as hydropower and wind and limited grid infrastructure and storage systems are expected to hinder the market's 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 reduced 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). The target is to reduce 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.
- According to the International Renewable Energy Agency (IRENA), solar power witnessed rapid growth and recorded a total installed capacity of about 28.71 GW in 2023. This represents a 23% increase compared to 2022. In 2022, electricity generation from solar, including PV and thermal solar, stood at about 31 TWh.
- In recent years, Spain has been witnessing a surge in investments to increase the country's solar power capacity. For instance, in February 2024, Statkraft received consent from the Spanish Ministry for the Ecological Transition (MITECO) to build a 228 MW 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 9 MW 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 solar photovoltaic market in Spain is expected to witness significant growth 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's renewable energy sector, particularly solar power, has become a focal point of the country's energy policy and a key contributor to its transition toward cleaner and more sustainable energy sources. The country is also among those European countries that obtain the maximum hours of sunshine.
- One of the driving factors behind the growth of solar energy in Spain has been the regulatory framework and support mechanisms provided by the government. Spain implemented favorable policies, including feed-in tariffs, subsidies, and competitive auctions, which have attracted investments and promoted the development of solar projects across the country. These policies have provided a stable and supportive environment for both domestic and international investors.
- Spain 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%, mainly due to a rise in expectations on how much solar PV can be built out by the end of 2030.
- Spain's revised renewables plans point to a massive 56 GW 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 European Union to achieve a 42.5% share of renewable energy in final energy consumption by 2030.
- According to Spain's minister of ecological transition, the government submitted a new incentive scheme to public consultation in February 2024. It is designed to support the development of a clean energy technology supply chain in the country. The authorities 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.
- The growth in solar energy installations has contributed to the expansion of Spain's overall renewable energy capacity. According to the International Renewable Energy Agency (IRENA), Spain's renewable energy capacity stood at 80,136 MW in 2023, a rise of 9% from the previous year.
- Therefore, considering the robust regulatory framework and the development of financial incentives for solar plants, the solar energy market in Spain is expected to witness growth during the forecast period.
Spain Solar Energy Industry Overview
The Spanish 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.
Spain Solar Energy Market Leaders
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The Red Eléctrica Group
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COBRA Group
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Solaria Energia y Medio Ambiente SA
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Acciona S.A.
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Iberdrola S.A.
*Disclaimer: Major Players sorted in no particular order
Spain Solar Energy Market News
- February 2024: TotalEnergies SE 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 consists of 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 have started commercial operations. The Puerto Real 3 project, located in the Andalusia region, covers 130 hectares and includes over 88,000 solar panels. Its installed capacity is 50 MW.
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, in GW, till 2029
- 4.3 Renewable Energy Mix, 2023
- 4.4 Recent Trends and Developments
- 4.5 Government Policies and Regulations
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4.6 Market Dynamics
- 4.6.1 Market Drivers
- 4.6.1.1 Declining Cost of Solar PV Installations
- 4.6.1.2 Supportive Government Policies for Renewable Energy
- 4.6.2 Market Restraints
- 4.6.2.1 Penetration of Other Energy Sources
- 4.7 Supply Chain Analysis
- 4.8 PESTLE Analysis
5. MARKET SEGMENTATION
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5.1 By Type
- 5.1.1 Solar Photovoltaic (PV)
- 5.1.2 Concentrated Solar Power (CSP)
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5.2 By 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
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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 rays and heat to generate electricity, thermal energy (including solar water heating), and solar architecture.
The Spanish solar energy market is segmented by type and deployment type. By type, it is divided into solar photovoltaic (PV) and concentrated solar power (CSP). By deployment type, it is divided into rooftop and ground-mounted. The report also covers the market size and forecasts for Spain's solar energy market. For each segment, the market sizing and forecasts are done based on installed capacity (GW).
| By Type | Solar Photovoltaic (PV) |
| Concentrated Solar Power (CSP) | |
| By 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.
