Imagine a country where nearly half its electricity comes from renewable sources. That’s Spain. In 2022, renewables accounted for 46.7% of the nation’s electricity, and this is just the beginning. With over 2,500 hours of sunshine annually, vast wind-swept plains, and a coastline begging for offshore wind farms, there are numerous renewable energy opportunities in Spain. The government’s ambitious plan to achieve 74% renewable electricity by 2030 offers not just hope but clear avenues for investment.
This isn’t just about saving the planet (though that’s a great bonus). It’s about positioning your business at the forefront of a booming industry. Whether it’s solar farms, wind turbines, or the next big breakthrough in energy storage, Spain’s doors are open. Let’s dive into the reasons why you should start renewable energy in Spain and the various renewable energy opportunities there.
Why Spain is Ideal for Renewable Energy Investments?
Spain’s renewable energy sector has witnessed remarkable growth over the past decade. According to the Spanish Ministry for the Ecological Transition and Demographic Challenge, renewable sources accounted for 46.7% of the country’s total electricity production in 2022, a significant increase compared to previous years. This upward trajectory is driven by the following factors:
- Abundant Natural Resources: Spain benefits from over 2,500 hours of sunshine annually, making it one of Europe’s top solar energy producers. Additionally, its long coastline and favourable wind patterns provide immense potential for wind energy projects.
- Strong Infrastructure: Spain’s robust power grid and existing renewable energy infrastructure offer a solid foundation for new projects.
Key Renewable Energy Opportunities in Spain
Entrepreneurs have multiple avenues to explore within Spain’s renewable energy sector.
Below are some of the most promising renewable energy opportunities in Spain for foreign entrepreneurs:
1. Solar Energy
Spain is Europe’s third-largest solar market, with a total installed capacity of 19 GW by 2023. The country aims to add 37 GW of new solar capacity by 2030.
Rooftop solar installations and community solar projects are especially attractive for small and medium-sized enterprises (SMEs).
Opportunity: Launching solar farms or offering solar panel installation services can yield high returns, given the growing demand for clean energy.
2. Wind Energy
Onshore wind power is a major contributor to Spain’s renewable energy mix, with an installed capacity of 28 GW in 2022. Offshore wind, while still nascent, holds tremendous potential due to the country’s coastal geography.
Opportunity: Entrepreneurs can invest in wind turbine manufacturing, installation, and maintenance services.
3. Hydropower
Spain’s hydropower capacity stands at 20 GW, making it one of Europe’s largest hydropower producers. Pumped-storage hydropower projects are particularly appealing for energy storage solutions.
Opportunity: Developing small-scale hydropower plants can cater to local energy needs, especially in rural areas.
4. Energy Storage Solutions
As renewable energy production increases, the need for efficient energy storage systems expands. Spain is investing heavily in battery technology and other storage solutions to stabilize its power grid.
Opportunity: Entrepreneurs can tap into the energy storage market by developing or distributing cutting-edge storage technologies.
5. Green Hydrogen
Spain is positioning itself as a global leader in green hydrogen production, with plans to produce 4 GW of electrolyzer capacity by 2030.
Opportunity: Investing in green hydrogen plants or creating a supply chain for hydrogen distribution can be highly lucrative.
Best Locations for Renewable Energy Business in Spain
Spain’s diverse geography and climate make it an ideal location for renewable energy projects, with different regions offering unique advantages for various types of energy production.
Here are some of the best locations to consider for starting a renewable energy business in Spain:
1. Madrid
As the capital of Spain, Madrid is not only a political and economic center but also an innovation centre for the renewable energy sector. The city offers access to numerous businesses, government institutions, and research centres focused on renewable energy technologies and solutions.
Why Madrid?
- Proximity to key decision-makers, investors, and renewable energy organizations.
- A strong emphasis on innovation and sustainability in business practices.
- A well-developed infrastructure and access to funding and incentives for energy projects.
Opportunities:
- Consulting and project development services for renewable energy projects.
- Research and development of new renewable energy technologies.
- Renewable energy training and education services to build expertise in the sector.
2. Valencia
Located on the eastern coast of Spain, Valencia offers excellent opportunities for both offshore wind energy and solar energy projects. The Mediterranean coast is well-suited for wind turbines, and the region’s abundant sunshine makes it ideal for solar energy ventures.
Why Valencia?
- Valencia has a growing focus on green energy, supported by local government initiatives.
- Its proximity to the sea makes it ideal for offshore wind energy projects.
- The region has been developing a renewable energy ecosystem, including a focus on green hydrogen and energy storage.
Opportunities:
- Offshore wind farms in the Mediterranean Sea.
- Solar power installations for both residential and commercial sectors.
- Renewable energy storage and integration into the grid.
3. Andalusia
Located in southern Spain, Andalusia is one of the best regions for solar energy projects. The region enjoys an abundance of sunshine, averaging over 3,000 hours per year, making it a prime location for solar power installations.
Why Andalusia?
- The region has vast areas of undeveloped land ideal for large-scale solar farms.
- Government incentives and support for renewable energy projects make it an attractive investment area.
- The region is already home to some of the largest solar energy projects in Europe.
Opportunities:
- Large-scale solar power plants.
- Solar panel manufacturing and installation services.
- Residential solar solutions, cater to the increasing demand for green energy in homes.
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Conclusion
Spain’s renewable energy market is diverse, and the right location for your business will depend on the type of renewable energy project you’re looking to develop. Whether you’re interested in solar energy in Andalusia, or wind energy in Valencia, there are plenty of renewable energy opportunities in Spain.
Other regions like Aragón also offer promising environments for large-scale renewable energy projects, while Madrid remains a key hub for innovation and business services. With strong government support, vast natural resources, and a growing demand for clean energy, Spain is undoubtedly an excellent destination for entrepreneurs seeking to make their mark in the renewable energy sector.
If you are looking to set up and grow your renewable energy business in Spain, you can reach out to our business experts from OnDemand International experts today.
FAQ’s
Spain is one of the leaders in renewable energy in Europe, thanks to its favourable climate, abundant natural resources (like sunlight and wind), and strong government support. The country aims to achieve a net-zero carbon emission goal by 2050, creating ample opportunities for businesses in solar, wind, biomass, and other renewable energy sectors.
Spain primarily relies on solar, wind, and hydropower, with emerging opportunities in energy storage and green hydrogen.
Yes, Spain offers a favourable environment for foreign entrepreneurs. The Spanish government has streamlined the process for business incorporation, and foreign investors can benefit from numerous incentives aimed at increasing the share of renewable energy.
Starting a renewable energy business in Spain requires understanding local regulations, securing necessary permits, and working with local authorities to comply with the country’s energy laws.
