“Spain is at a historic moment for the development of solar energy,” says José Donoso. In an interview with Strategic Energy Europe, the President of the Spanish Photovoltaic Union (UNEF) confirms that the sector is projecting up to 30 billion euros in investments linked to the 25 GW of new solar parks that already have construction permits.

These figures position the country as one of the most attractive markets in the world for this renewable technology, as confirmed by the latest EY report, which ranks the country among the global leaders.

However, the extent of this transformation will depend on the ability to overcome logistical and structural challenges.

An Investment Conditioned by Construction Timelines

The investment range, between 20 and 30 billion euros, is closely tied to the execution of the authorised projects.

“If all the plants receive the green light for construction, we will reach the upper end of the investment range. But if there are delays, the economic impact will be lower,” explains Donoso.

To avoid setbacks, UNEF has requested details from the government about the timelines that companies have set for their projects.

“We want to know in which semesters they plan to build these parks. If they concentrate on one single period, we could face bottlenecks in the supply chain and in the ability of EPC contractors to meet the demand,” he warns.

Challenges for Energy Transformation

Beyond investments, the sector faces significant challenges. One of them is the design of a more suitable electricity market for renewable energy.

“The current marginalist system does not reflect the real costs of technologies like solar, which have no variable costs. We need well-designed auctions to ensure stability in energy prices,” explains Donoso.

Progress in reducing emissions in the electricity sector is highlighted, but the challenge now is to extend this progress to the industrial and transport sectors.

The Key Role of Panel and Component Manufacturing Plants

Developing an industrial base linked to the manufacturing of solar components is a strategic point for consolidating the sector’s growth.

In this regard, the executive highlights that “it is almost a necessity to have factories in Spain,” as it will strengthen the supply chain, reduce time and costs, and increase the capacity to respond to developers’ demands.

One of the companies interested in establishing a local solar panel factory is Trina Solar, which has already announced its intentions.

However, Donoso is cautious: “Until these projects become a reality, we cannot provide many details. But we are in contact with investors, not just in panels, but also in other parts of the value chain.”

According to the UNEF president, there is interest from multiple international players in leveraging Spain’s strategic position to establish industrial operations.

Furthermore, he emphasises that these factories could create highly skilled jobs and strengthen the country’s role as the European solar hub.

A Sector in Transformation

The success of the solar sector depends not only on investments but also on solving structural challenges.

For example, managing the electricity grid requires moving from a static model to a dynamic one that can keep up with the rapid growth of solar energy, with greater incorporation of batteries and other storage systems, as well as the defined commitment to green hydrogen production.

On the other hand, the electrification of final consumption remains an unresolved issue.

“We have made great progress in decarbonising the electricity sector, but we need to go further and electrify industrial and energy-intensive uses,” Donoso emphasises.

Finally, the UNEF president underscores that this boom represents an opportunity for the national economy and concludes: “More than 200,000 families are already directly dependent on the solar sector in Spain, and every euro invested translates into development, jobs, and sustainability.”