Spain faces slowdown in renewable energy projects

Spain is experiencing a significant slowdown in the development of new renewable energy projects following a period of massive expansion. While solar capacity has doubled in just over three years—rising from under 30,000 MW to nearly 57,000 MW according to Red Eléctrica de España (REE)—the pace of new installations is moderating.

In 2025, the government and autonomous communities granted construction permits for 482 renewable projects totaling less than 8,200 MW, representing a 69% decrease compared to the previous year. This decline is attributed to several factors: overcapacity in electricity production, stagnant demand, and uncertainty regarding investment profitability due to volatile electricity market prices. These conditions have subsequently made it more difficult for companies to secure financing from banks.