In 2024, Spain marked a milestone in its energy transition with a growth in electricity demand, with 55.8% of its energy mix covered by renewables. Wind energy led the way with 23%, followed by solar and hydroelectric power at 17% and 13%, respectively.
Felipe González Coto, a mining engineer and energy expert, highlighted: “This growth demonstrates progress towards Spain’s climate goals, but also underscores the need to address key structural challenges.”
In an interview with Energía Estratégica España, the analyst explained that the 1.4% growth in electricity demand, reaching 247,038 GWh, was driven by economic recovery and the electrification of key sectors.
However, experts warn that this increase is not enough to balance the growing renewable capacity and prevent curtailments, one of the biggest challenges to address in 2025.
The loss of unused renewable energy due to grid restrictions or low demand “will not be reversed without growing demand and effective storage solutions, so we will continue to see negative prices during periods of high wind and solar generation,” states González Coto.
Although initiatives promoted by MITECO aim to foster storage and green hydrogen, these projects are still far from large-scale implementation.
“Integrating advanced technological solutions is a priority to ensure a more efficient and resilient electrical system,” the expert clarifies.
Infrastructure Challenges
Renewable growth faces significant limitations in electrical infrastructure. González Coto points out, “It is crucial to improve smart grids and streamline the approval processes for new projects. Without these improvements, renewable potential will be constrained.”
Grid bottlenecks, combined with insufficient investment, are obstacles to more efficient integration of clean energy sources.
Moreover, local communities face social resistance, particularly to offshore wind projects and storage systems.
“Active dialogue with communities is needed to overcome social objections, a factor that could significantly slow down expansion,” adds the expert.
Projections for 2025
Looking ahead to 2025, estimates from the National Commission on Markets and Competition (CNMC) and Red Eléctrica de España (REE) forecast a demand growth of between 1.3% and 1.5%. This growth, associated with a projected GDP of 2.3%, will be more modest than in 2024 due to the economic slowdown in the eurozone.
In this regard, González Coto warns, “Although the growth will be lower, installed renewable capacity will continue to increase, exacerbating the curtailment challenge.”
Self-consumption and energy efficiency emerge as key factors. In 2024, photovoltaic solar grew by 30.6%, and this trend is expected to continue. The development of residential and industrial self-consumption solutions could partially alleviate pressure on the electrical system, according to the expert.
The advancement of renewables in Spain is undeniable, but the country faces a 2025 full of challenges to consolidate these achievements. Resolving infrastructure issues, reducing curtailment, and fostering social dialogue will be key to maintaining leadership in the energy transition.
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