Solar Power is Engine of Spain's Economic Growth

On Friday, April 5, Spain's Council of Ministers approved a royal decree regulating electricity self-consumption from the administrative, technical and economic point of view.
Solar Power is Engine of Spain

Collective self-consumption has been enabled, which can benefit neighborhood communities and industrial estates. The procedures to be carried out by the self-consumers when an installation is registered are simplified and a mechanism for remuneration of the electricity produced and fed into the grid is established.

The new royal decree regulates a set of mechanisms for new activity that is the result of the massive increase in the use of photovoltaic energy. Some of these regulations did not exist and others were not satisfactory to empower self-consumption activity.

It should be noted that the UNEF, the Spanish Photovoltaic Union, played a large role in this achievement. 

Renewable energies, especially photovoltaic energy, represent an opportunity for southern European regions to compensate for economic inequalities with respect to the northern regions. The fall in the prices of photovoltaic technology means that domestic and industrial self-consumption installations are becoming more affordable, and can now be done collectively thanks to this new royal decree. The high price of electricity Spain has experienced since 2018 has a negative effect, especially for the industries that consume large amounts of electricity. Through individual or collective self-consumption these prices can be reduced. In addition, self-consumption can bring new income if the surplus is fed into the grid, providing an opportunity for many companies.

Another important aspect of the incentives for self-consumption is to replace energy imports. Every year the Spanish electricity sector imports electricity, gas, coal, diesel and nuclear fuel. The result is tens of billions of euros leaving the country. With each MWh that Spain can self-produce, it will be reducing the imports electricity bill. In the future, AleaSoft’s vision is for Spain to become a net exporter of renewable energy. In addition, with each MWh the country can self-produce it will be helping to decarbonize the electrical system and to reduce CO2 emissions and other polluting gases.

The implementation of renewable energies is a fundamental part of the future development of Spain, especially in the southern regions of the country where there are more hours of sunshine and solar energy production, mainly photovoltaic, is more productive.

The recently published Integrated National Energy and Climate Plan (NECP) proposes a very important growth in renewable energy capacity, and highlights solar energy with the installation of more than 37 GW throughout the national territory, representing a growth of 530 percent compared, for example, with the 114 percent expected for the wind energy. From these 37 GW solar of the NECP, 32 GW correspond to photovoltaic energy and 5 GW to solar thermal energy.

More Power Purchase Agreements are being signed to install hundreds of new megawatts in the country. For the next ten years, investments worth €30 billion are expected in the renewable sector. With each PPA, investments in renewable energies are guaranteed and consumers obtain stable prices in the future, as well as a 100 percent renewable electricity supply guarantee.

These investments must be channeled to the most disadvantaged regions so they provide new incomes and jobs. The new sources of clean energy should be a basis for creating new industries, training centers and research centers. With every MWh that we can self-produce or produce with renewable energies we will be helping to create jobs, knowledge and wealth for the most disadvantaged regions and in general for the whole country.

Source: Prepared by AleaSoft with data from the Integrated National Energy and Climate Plan.

Information provided by AleaSoft

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