Spain is effectively discarding renewable electricity due to existing issues in the transportation grid, as highlighted in a report by Aurora Energy Research.
In 2022, Spain integrated 8,400 megawatts of renewable generation capacity into its electrical system, including 5,899 megawatts of wind and photovoltaic energy and approximately 2,500 megawatts of photovoltaic power in solar installations for self-consumption. However, the electrical grid has not evolved at a similar pace, leading to situations where generated renewable energy cannot always be delivered to consumers due to transmission and distribution network limitations. This phenomenon, known as 'curtailment,' refers to renewable electricity that cannot be injected into the grid due to lack of demand or system capacity at a given time.
The International Energy Agency (IEA) also notes a direct relationship between the restriction of renewable energies and the lack of progress in the transmission and distribution network capacity. The agency emphasizes the need to modernize infrastructure to facilitate energy transportation from renewable production areas, often distant from consumption centers. While solutions such as electricity storage through flexible charging of electric vehicles can be beneficial, investment in networks is essential to fully leverage the potential of renewable resources.
In numerical terms, the curtailment of solar and wind energy in Spain increased more than tenfold, from 67 GWh in 2021 to 715 GWh in 2022. This waste of renewable energy represents a significant cost to the Spanish electrical system, estimated at around 1.3 billion euros, roughly equivalent to 68 euros per household.
The Spanish National Commission on Markets and Competition (CNMC) has urged the Ministry for Ecological Transition to take action on this issue. The CNMC suggests that future regulations should allow facilities significantly affected by these limitations to request that their production reduction not be considered in calculating their equivalent operating hours. This approach has precedent in exceptional situations, as established by Royal Decree-Law 15/2018, which introduces an exception in calculating the number of equivalent operating hours under certain circumstances.
Furthermore, Spain's renewable energy companies face an uncertain future. The potential for significant reductions in wholesale electricity market prices in the coming years poses an increasing risk of bankruptcies in the sector. This scenario is exacerbated by concerns over an 'energy price cliff' in 2026, which could compromise sector development and create bottlenecks in both financing and construction of new facilities. This underscores the need for strategic planning and regulation to ensure the long-term viability of Spain's renewable energy sector.
Spain faces a critical challenge: despite impressive growth in renewable energy generation, the lack of parallel development in the transmission and distribution network is leading to significant waste of this clean, renewable energy. This issue not only represents a considerable economic cost but also hampers progress toward a more efficient decarbonization of the electrical system.
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