Solar power in Spain

Through a ministerial ruling in March 2004, the Spanish government removed economic barriers to the connection of renewable energy technologies to the electricity grid. The Royal Decree 436/2004 equalised conditions for large-scale solar thermal and photovoltaic plants and guaranteed feed-in tariffs.[13]

Spain added a record 2.6 GW of solar photovoltaic power in 2008,[14] a figure almost five times that of the next record year, increasing capacity to 3.5 GW.[15] Spain surpassed both Japan and the United States in 2008 as the number two market as measured by cumulative installed PV capacity behind the world leader at the time Germany, accounting for 24% of global PV capacity.[16] PV capacity added during 2008 would still account for more than half of total capacity as of 2016. In 2008 the Spanish government committed to achieving a target of 12% of primary energy from renewable energy by 2010 and by 2020 expected the installed solar generating capacity of 10 GW.[17]

Since 2010, Spain has been the world's leader in concentrated solar power (CSP). Spain is leapfrogged by Italy during 2011 following a later solar boom there to lose its position as the world's second largest installer of solar PV.

By the end of 2012, 4.5 GW of solar photovoltaics had been installed, and in that year 8.2 TWh of electricity was produced.[18] New installations of solar photovoltaics have slowed down significantly to around 300 MW during 2012. By the end of 2012 Spain had also installed over 2,000 MW of CSP.

The first three units of Solnova in the foreground, with the two towers of the PS10 and PS20 solar power stations in the background.

Almost no new solar capacity is added during this period following the removal of government feed-in tariffs. Having promoted the solar industry with large government subsidies during earlier periods, the system now operates under a 180-degree turn with a punitive 'sun tax' applied to new PV systems which would otherwise flourish. Spain has been cited as a model in how not to develop renewables.[19] The hoped for growth in self consumption solar generation during 2016 fails to materialise due to delays to reforms following the extended time taken to form a government, albeit with just one party opposed to reforms in this area.[4]

In May 2017, Spain held an auction for new renewable capacity to be online by 2020. Solar projects won only 1 MW of the 3000 MW awarded. After complaints by the solar industry which felt the auction terms favoured wind power, another auction occurred in July. In this auction, solar projects received 3,909 MW and wind received 1,128 MW.[20][21] Financing, land acquisition and solar panel price fluctuations could reduce the actual amount of solar power installed.

A new sector of the market begins to make headway in the Spanish market following the easing of regulations on self consumption generation. 261.7 MW of new solar power was installed, of which just 26 MW were connected to the grid and the remainder, 235.7 MW being self-generating installations.[22] It is expected that this could increase to 300 to 400 MW per year following further easing of regulations in May 2018.[22] Renewable energy auctions held in the previous year have yet to show much impact on grid connected capacity but expected to make a considerable change during 2019. According to industry sources the 3.9 GW tendered through government auctions has been dwarfed by huge merchant and power purchase agreements bringing the combined total under consideration to 29 GW.[23] The re-emerging boom in Spanish solar PV is not being driven by subsidies or government tenders but as a result of solar being a highly cost effective proposition for electricity needs.

Utility scale solar PV dominated the cumulative installed capacity in 2018 accounting for over 75% of the total in Spain although some sources would not define smaller sized installations as utility scale. Only 2% of Spain's installations in 2017 were in the size typical for residential rooftop solar. This is typically the situation in European countries which had a short-term generous feed in their tariff system with little attention to policy consistency and scale of installations. As of 2018, 19% of Europe's cumulative PV capacity was installed on residential rooftops, and about 30% on commercial roofs, while the industrial segment accounted for 17%, and the utility market for 34%.[29]

According to a report on behalf of the European Commission Spain had just 49 MW of residential solar PV capacity with just 12,000 residential solar PV prosumers in the country representing only 0.1% of households as of 2015.[30] The average size of residential solar PV installations in Spain moving forwards to 2030 is 3.94 kW.[30] The technical potential for residential solar PV in Spain is estimated at 13,620 MW.[30] The United Kingdom, a relative latecomer to Solar PV development, had 2,499 MW of residential solar PV installed as of 2015.[30]

• 
  PV solar parking lot in Madrid
• 
  BIPV façade at MNACTEC, near Barcelona
• 
  An isolated mountain hut with stand-alone PV system in Catalonia
• 
  solar PV system at a sewage treatment plant in Santuari de Lluc (Mallorca)
• 
  solar PV system at a port warehouse in Galicia

At the time of opening, the General Motors facility at Figueruelas was the world's largest photovoltaic (PV) roof, consisting of 85,000 lightweight panels, thereby reducing annual carbon dioxide emissions by 6,700 tonnes per year.[32] GM planned to install solar panels at eleven other plants across Europe.

Photovoltaics (PV) convert sunlight into electricity and many solar photovoltaic power stations have been built in Spain.[33] As of November 2010, the largest PV power plants in Spain include the Olmedilla Photovoltaic Park (60 MW), Puertollano Photovoltaic Park (47.6 MW), Planta Solar La Magascona & La Magasquila (34.5 MW), Arnedo Solar Plant (34 MW), and Planta Solar Dulcinea (31.8 MW).[33]

BP Solar begun constructing a new solar photovoltaic cell manufacturing plant at its European headquarters in Tres Cantos, Madrid.[36] For phase one of the Madrid expansion, BP Solar aimed to expand its annual cell capacity from 55 MW to around 300 MW. Construction of this facility was underway, with the first manufacturing line expected to be fully operational in 2009.[36] The new cell lines would use innovative screen-printing technology. By fully automating wafer handling, the manufacturing lines would be able to handle the very thinnest of wafers available and ensure the highest quality.[36] Thin wafers are of particular importance since there has been a silicon shortage in recent years. However, after the new national law limiting installed power by year, in April 2009 BP Solar closed its factories.[37]

Since the beginning of 2007, Aleo Solar AG has also been manufacturing high-quality solar modules for the Spanish market at its own factory in Santa Maria de Palautordera near Barcelona. In 2014 SITECNO S.A. took over this facility[36]

In 2006, Spain implemented a regulatory instrument of national jurisdiction promulgated by the Royal Decree 314/2006 referred to as the technical building code (TBC or CTE in Spanish) to regulate the basic quality requirements of buildings and their respective installations concerning thermal and photovoltaic solar energy. It applies to new constructions as well as any modifications made on any existing building with the final goal to guarantee and promote the use of renewable sources of energy.[42]

Concerning thermosolar energy, Spain was the first country in Europe to enforce the integration of solar thermal systems in new constructed or refurnished buildings to cover from 30 to 70% of the Domestic Hot Water (DHW) demand. Article 15.4 of the TBC states that "buildings with foreseen demand for hot water or the conditioning of a covered swimming pool, part of the thermal energy needs shall be covered by incorporating systems for the collection, storage and use of low temperature solar energy [...]".[43]

In relation to Photovoltaic power, Article 15.5 requires the incorporation of "systems for the collection and transformation of solar energy into electric power by photovoltaic processes for proprietary use or supply to the network".[44] This policy triggered the production of this type of renewable energy positioning Spain on top of the largest producers of photovoltaic electricity in the world by 2009.[45]

In the wake of the 2008 financial crisis, the Spanish government drastically cut its subsidies for solar power and capped future increases in capacity at 500 MW per year, with effects upon the industry worldwide. "The solar industry in 2009 has been undermined by [a] collapse in demand due to the decision by Spain", according to Henning Wicht, a solar-power analyst.[8] In 2010, the Spanish government went further, retroactively cutting subsidies for existing solar projects, aiming to save several billion euro it owed.[14][46] According to the Photovoltaic Industry Association, several hundred photovoltaic plant operators may face bankruptcy.[47] Phil Dominy of Ernst & Young, comparing the feed-in tariff reductions in Germany and Italy, said; "Spain stands out as an example of how not to do it".[48] As a result, a Spanish association of solar power producers has announced its intention to go to court over the government's plans to cap solar subsidies. In 2014 alternative energy group NextEra filed a complaint against Spain at the International Centre for Settlement of Investment Disputes.[49]