Elecnor, one of the leaders in renewable project construction, is facing a Spanish market marked by uncompetitive energy prices, insufficient demand, and challenges in social acceptance.

Manuel Murias, Head of International Business Development, emphasizes that this landscape forces the company to rethink timelines and objectives in the local market.

This situation particularly affects photovoltaic energy, whose profitability is compromised, and wind energy, which faces significant social opposition, especially in regions like Galicia and Catalonia.

Royal Decree Law 8/2023, which extended administrative deadlines, helped save a large portion of the 28 GW with government permits that would have lost their connection points.

However, it also generated significant delays in construction, as developers seek more favorable conditions.

“Many developers are choosing connection dates for the end of 2027 or 2028, indicating that these projects are moving towards the long term,” Murias details in an interview with Energía Estratégica España.

This scenario could lead to a slowdown in construction activity by the end of 2025 and 2026, unless demand is significantly reactivated or energy prices rise, according to him.

“Ideally, developments that will connect in 2028 should begin construction by late 2026 to meet timelines. Otherwise, it will be impossible to make it on time,” he adds, as this involves starting work on very tight schedules, especially for parks larger than 50 MW, which typically require between 12 and 14 months to build.

In this context, storage emerges as a key piece, but its implementation also faces barriers, as financial models for incorporating batteries are unfeasible with current energy prices in Spain, according to the company, which calls for greater clarity in the rules to incentivize this technology.

Murias describes this situation as “an indicator that many developers have no intention of building, at least under current conditions,” noting the growing trend of promoters selling their projects before advancing to operational phases.

The supply chain also plays a crucial role in renewable development. According to the executive, last year the industry was concerned about the responsiveness of suppliers, a concern that now seems to have partially dissipated.

However, the postponement of project launches could once again generate tensions in contractor and material availability by the end of the decade.

Despite the difficulties, Elecnor remains committed to local development. “In Spain, we are focused on incorporating the local community into our projects. This includes training personnel and generating stable employment in remote regions,” the company representative states.

Global Strategy: International Markets as a Growth Path

With a challenging local environment, Elecnor is betting on its internationalization. The company has accumulated a global track record of 7.2 GW in photovoltaic energy and 7 GW in onshore wind, in addition to eight storage projects in countries like Australia and Mexico.

One of the most prominent is the BESS Apply Blyth system in Australia, with a capacity of 200 MW for two hours, which Murias describes as “the unicorn in our portfolio.”

In Chile, Brazil, and Mexico, there are also significant opportunities, particularly in batteries, although each market has its own complexities. “Chile is the most developed in Latin America, while Mexico still lacks regulatory clarity to move forward,” he describes.