APPA Renovables’ annual report positions renewable energies as the key players in Spain’s electrical system, contributing 55.8% to the energy mix in 2024.

In December, renewables accounted for 47.6%, generating 10,795 GWh, according to the analyzed data.

Wind power, with 22.9%, led the renewable contribution, followed by hydro (11.2%) and solar (10.8%).

These figures solidify the sustained growth of clean energy sources, although challenges remain in meeting the 2030 targets.

One of the report’s key conclusions is the stability in the costs of adjustment services.

During April 2024, a month with over 55% renewable participation, the average cost of these services was €18.44/MWh, a figure that remained consistent in December, when renewable contribution was below 50%.

“Adjustment services did not experience a significant increase, which demonstrates that renewables do not drive up the cost of managing the electrical system,” emphasizes APPA Renovables’ Technical Director, Javier Lázaro.

In a conversation with Energía Estratégica España, the executive notes that this is an interesting finding, but it will need to be analyzed in more depth and over the long term.

System efficiency: curtailment and demand

Another notable point is the low rate of energy curtailment, which did not exceed 2% during 2024, highlighting the system’s ability to integrate renewables efficiently.

Although this is a concern for renewables due to the high amount of installed capacity projected in a short period, the curtailment rate remains among the lowest in the world. Spain has one of the highest renewable penetrations, with 5,879 MW of new renewable power according to Red Eléctrica España data, of which 5,045 MW is solar photovoltaic.

Meanwhile, national electricity demand increased by 1.4% in December, reaching 21,473 GWh. This growth marks a milestone after decades of stagnation.

“We believe that this has also contributed to the increased use of combined cycle plants this month, but still, the overall balance is positive, and we can see that for nearly 20 years, national electricity demand has not increased compared to the previous year,” clarified Lázaro.

Market prices and hydro generation

The average market price in December was €111.24/MWh, the highest of the year and the second highest since 2023. Captured prices varied by source: hydro reached €112.53/MWh, while hybridization recorded the lowest price at €92.26/MWh.

Despite these fluctuations, the system did not register any hours with negative or zero prices in December, accumulating 784 hours throughout 2024.

Despite progress, the report highlights the need to address key challenges such as energy storage and demand electrification.

Additionally, it notes that the coverage of biomethane relative to national demand remains limited, at 0.080%, reflecting the potential of this technology if supported by more ambitious regulatory policies.

“The potential of biogas to harness waste and contribute to the energy transition is immense, but it remains an underutilized resource,” says the Technical Director of APPA.

Among the main obstacles to its deployment, he points to the lack of clear and efficient regulations and emphasizes that “it is crucial to establish rules that incentivize the development of biogas and biomethane projects, including clear criteria on minimum distances from plants to populations or simplified processing procedures.”

Additionally, he highlights the importance of working on social acceptance, as local communities often show resistance due to misconceptions about the environmental and health impact of these facilities.

“There are good projects and others that need to be revised, but the key is to establish clear standards that allow us to differentiate between them,” Lázaro adds.

Finally, hydroelectric reserves remain a critical point, with a fill rate of 52.30%, while CO2 prices increased to €67.01/ton, reaffirming the importance of advancing decarbonization.

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