Enables the Transition to a Fossil-Free Energy Production
Unprecedented Growth in Renewable Energy on the Iberian Peninsula
July 2024
The Iberian Peninsula, encompassing Spain and Portugal, is rapidly establishing itself as a leading force in renewable energy within Europe. The region's commitment to expanding renewable energy sources has led to remarkable developments and significant investments, positioning it as a new European energy powerhouse.
Massive Expansion in Renewable Energy Capacity
According to recent reports, Spain and Portugal are set to achieve 79% renewables in their combined electricity mix by 2030, a substantial increase from 48% in 2021. This growth is primarily driven by extensive developments in solar and wind energy, supported by favourable policies and strategic investments from both public and private sectors (pv magazine International) (EVWind).
Major Projects and Investments
Several high-profile projects highlight the rapid expansion and technological advancements in the region:
- Battery Energy Storage Systems (BESS): Galp and Powin have partnered to install a 5MW/20MWh energy storage system in the Algarve, marking Powin's first project in Europe. This project is part of a broader plan to support the rapid growth of energy storage across Europe, the Middle East, and Africa (Portugal News).
- Renewable Fuels: Repsol has opened the first large-scale renewable fuel plant on the Iberian Peninsula in Cartagena, Spain. The plant, which required an investment of €250 million, can produce 250,000 tons of renewable fuels annually, significantly reducing CO2 emissions (Petro Online). Furthermore, Repsol is expanding its renewable fuel offerings to 600 service stations across the peninsula by the end of 2024 (Euro Weekly News).
- Offshore Wind: Repsol and EDF Renewables have signed an exclusivity agreement to collaborate on offshore wind projects in Spain and Portugal. This partnership aims to leverage Repsol's local market expertise and EDF's advanced offshore wind technology to develop substantial renewable energy capacity (Riviera Maritime Media).
Sens's Strategic Involvement
- Energy Clusters: Sens has been instrumental in developing integrated energy clusters that combine various renewable technologies, including UPHS, BESS, and solar power. These clusters optimize energy production and management, reduce transmission losses, and provide a robust framework for renewable energy integration .
- Solar Power Projects: Sens has launched several large-scale solar power projects across Spain and Portugal. These projects aim to maximize solar energy output and improve yield on the frequency market, contributing significantly to the region's renewable energy capacity.
- Underground Pumped Hydro Storage (UPHS): Sens's innovative use of underground mines for constructing hydro storage reservoirs significantly reduces environmental impact and costs. This technology is a cornerstone of our renewable energy strategy, ensuring stable and reliable energy supply.
Competitive Advantages and Future Outlook
The Iberian Peninsula benefits from natural advantages, such as abundant sunlight and favourable wind conditions, which make it ideal for renewable energy projects. Additionally, electricity prices in the region are significantly lower than in other European countries, providing a competitive edge (pv magazine International). With more than 50 GW of installed renewable capacity, the region is poised for continued growth, with solar photovoltaic installations expected to overtake onshore wind power by 2030.
Spain and Portugal's strategic focus on renewable energy not only enhances their energy independence but also contributes to the broader European goal of achieving a sustainable and carbon-neutral future. The region's progress serves as a testament to the effectiveness of coordinated policy measures and investments in driving the energy transition.
Stay tuned to Sens's updates for more insights and developments in the renewable energy sector as we continue to lead and innovate in this dynamic market.
For more information contact our team at info@sens.se
