Photovoltaics in Spain is facing a critical moment . After closing 2024 with 7.2 GW installed —of which 1.2 GW corresponds to self-consumption , according to UNEF data —the country appears to have successfully completed a first phase of expansion. But the second phase, heading toward the 76 GW of solar energy planned for 2030 in the PNIEC , faces structural bottlenecks.

From the Spanish Photovoltaic Union (UNEF) , José Donoso , its General Director, warns that the lack of auctions, the stagnation of electrification and the absence of storage measures are slowing growth .

“We have completed the first phase of developing the energy transition objectives. But now we must face significant challenges,” he said in an interview with Strategic Energy Europe .

In their analysis, the current energy pricing system, based on variable costs, creates a structural dysfunction for technologies like solar, which do not have variable costs.

And although any reform of this system should be carried out at the European level, he believes that “Spain needs to implement urgent measures in the meantime.”

According to UNEF, the electrification of end-uses is one of the most lagging areas. Although 65% of Spain’s energy mix is already composed of renewable sources, key sectors such as transportation, air conditioning, and industrial processes continue to rely heavily on fossil fuels.

“The big challenge now is to introduce real electrification. Replacing fossil fuels with photovoltaic-generated electricity is essential to attract industrial investment and stabilize prices,” says Donoso.

Solar PPA market in Spain reinforces UNEF’s assessment. As Miguel Marroquín , CEO of Our New Energy, recently analyzed, long-term contracts are being signed at extremely low prices, around €25–30 per megawatt hour, which restricts their viability to projects with optimal conditions.

This scenario directly impacts the possibility of financing new developments, especially in a context without auctions.

Donoso agrees that the current market design does not offer price signals that would make new investments viable .

Without variable costs, solar energy is exposed to a marginalist model that penalizes it.

“An alternative to this uncertainty and price variability is to hold auctions,” he says, adding that they must include “a maturation period longer than the amortization period for the plants” to be effective.

Frozen auctions and barriers to self-consumption

The lack of new auctions is one of the factors that most concerns the solar ecosystem. “These auctions must be held as soon as possible and under appropriate conditions that provide certainty,” Donoso demands.

Although the government has promised to hold them two years ago, they have not materialized.

In this context, the executive emphasizes that while some large companies can avoid participating in these mechanisms thanks to their corporate financing, many others depend on them for financing.

“It’s voluntary. If a company doesn’t need them, they shouldn’t participate. But those that do should have the option,” he points out.

The justification given to UNEF by MITECO regarding the delays in launching the auctions is based on the preparation of a new, complex design that includes attractive non-economic criteria and encourages projects that incorporate storage.

Self -consumption , for its part, although growing, faces bureaucratic obstacles. Regulatory barriers, administrative rigidity, and a lack of clear incentives are hindering its expansion.

Donoso argues that administrative simplification mechanisms, as well as tax incentives and tariff adjustments, are needed to promote their deployment.

At the same time, a specific regulatory framework for energy storage is urgently needed , an essential tool for balancing prices and improving the profitability of projects during off-peak hours.