Skip to main content


Global Solar PV Market Report

Key Regional Markets


Solar PV Capacity


GDP (Current Prices) USD (2022)


GDP Growth Forecast (constant prices) (2023-2027)


Country Credit Rating (S&P)


Renewable Energy capacity (2022)


Solar PV Share in Renewables (2022)


Renewable Energy Target
Achieve 42% of final energy use from renewables, and 74% of electricity supply from renewable energies by 2030, rising to 100% renewable by 2050.

Italy is one of the major renewable markets in Europe. Solar PV has always played a crucial role in shaping the country’s renewable sector. In order to adhere to the targets set at European level by the “Fit-for-55” measures’ package, renewable energy in Italy will need to cover at least 65% of end consumption in the electricity sector by 2030, compared to the 55% initially set in the National Integrated Energy and Climate Plan (PNIEC), for a total of 70GW of additional power.

This translates into an annual capacity addition of 10GW from now until 2030, marking a substantial increase from the roughly 3GW installed in 2022. A major portion of this capacity will be generated from the country’s wind and solar assets, which are the most mature of all other technologies. The projects planned by grid operator Terna would make a significant contribution to achieving this goal.


  • Elimination of building permits and simplification of administrative barriers to self-consumption make self-consumption segment more common and accessible
  • Commitment to decarbonization and enhanced energy security lay the foundation for future growth prospects


  • Renewable auction largely undersubscribed as it failed to consider the increased costs of new renewable energy projects
  • Law requiring plants under development to speed up permitting procedures puts heavy pressure on the administrative authorities

Renewable Energy Mix

Source: IRENA Renewable Capacity Statistics April 2023

The Spanish government has done an admirable job of ramping up renewable energy in its electricity mix. According to Red Eléctrica, 2022 marked 42.2% of the electricity generation coming from renewable sources. Wind and solar had a banner year, generating 61,176GWh and 31,988GWh, respectively, representing 1.1% and 24.5% year-on-year growth over 2021. Solar power managed to surpass the renewable hydropower, currently positioning itself as the third most power generating technology accounting for 16.6% of the total national installed power.

Installed Capacity: Status and Trend

Trend in Installed Solar PV Capacity

Trend in Installed Onshore Wind Capacity - Denmark

Source: IRENA Renewable Capacity Statistics April 2023

In 2022, Spain added 5.9GW of renewable energy capacity, an increase of 9% over 2021. The increase in installed renewable power has been mainly attributed to solar power, which contributed 4.5GW, or 76%, of the new power installed, marking the largest growth ever recorded. Installed solar PV capacity increased by 29% year-on-year in 2022, driven mainly by the self-consumption segment.

This breakthrough can be largely ascribed  to  Spain’s  decentralised government system, high coordination between their local and state level counterparts,  and strong supporting policies and tax credits. Furthermore, Spain’s geographical advantage of receiving more than 3,000 hours of sunshine per year contributed to accelerated solar deployment.

Demand Drivers

Since the cancellation of the ‘Sun tax’ on self-consumption in 2018 and the finalization of the current framework in 2020, rooftop solar capacity increased from 596MW in 2020 to 2.5GW in 2022. The growth was further motivated by high electricity prices, energy uncertainty caused after the invasion of Ukraine, as well as the promotion of the aid contemplated within the Government Recovery Funds. Additionally, eliminating building permits in autonomous communities and simplifying administrative barriers to self-consumption are creating a positive synergy to make self-consumption more common and accessible. According to Spain’s  Roadmap  of  Self-Consumption,  approved  in December 2021, its self-consumption segment could install between 9GW and 14GW by 2030.

Furthermore, the Spanish Government simplified approval procedures through Royal Decree-Law 6/2022. The decree set provisions to conduct self-supply capacity auctions in nodes and provided regulations for floating solar PV plants, thereby unlocking new avenues for PV development. In 2022, the Spanish energy ministry approved changes to environmental planning rules which will fast-track permitting of solar projects with capacities up to 150MW. The streamlined process will remain in place until 2024 and will only apply to projects with a low or medium environmental impact.

A major part of the government’s plan to develop renewable energy in the country is through renewable energy auctions, one of the primary tools under the Renewable Energy Economic Regime (REER). Following several successful auctions, the fourth renewable auction in November 2022 was largely undersubscribed. The main reason for its failure was banked upon the fact that it failed to consider the increased costs of new renewable energy projects. However, to renew investor and developer interest, the Spanish government expects to hold the next renewable energy auction in October 2023.

Failure of the latest auction is somewhat offset by the growing corporate PPA market. In 2022, developers signed 8.4GW of PPAs in Europe, where Spain held the largest share with around 3.2GW of disclosed capacity across 31 deals. PPA markets in Spain are driven mainly by post-pandemic manufacturing booms and reduced logistical challenges. Additionally, the gradual decline in inflation, although compensated for by higher interest rates, has given developers greater transparency into their capital expenditures, thereby reducing uncertainty in their PPA calculations. Price drops are expected in Q2 due to an influx of solar supply, putting downward pressure on PPAs. According to the Ministry of Ecological Transition, 132 solar PV projects were approved in January 2023, further confirming the hypothesis that prices will decline. Additionally, the drop in natural gas and wholesale electricity prices is forcing developers to decrease their PPA prices to remain a competitive option for buyers.

Market Opportunity

The Spanish Parliament approved the Climate Change Act in May 2021, setting a dual target for renewables by 2030. Spanish National Climate and Energy Plan (NECP) envisions a solar PV capacity of 39.2GW in 2030 to meet the targets. Furthermore, this plan may be revised upwards in 2023, with new targets for solar PV capacity possibly increasing to 50 to 65GW, since the country has already achieved about 50% of its 2030 goal.

A supportive ecosystem for hydrogen development will also encourage solar development in the region. Through its abundant solar and wind resources, Spain aims to become one of Europe’s top producers of green hydrogen. In October 2020, the Spanish government announced a green hydrogen roadmap, which calls for the installation of 300MW to 600MW of electrolyser plants by 2024, and at least 4GW by 2030. Spanish companies have already begun investing in renewable hydrogen projects. Spanish energy company Cepsa has announced plans for a 200MW solar PV project to supply power to a green hydrogen plant in Andalusia. In May 2022, Iberdrola inaugurated the Puertollano Green Hydrogen Plant which is powered by a 100MW solar power plant and 20MWh BESS.

European Investment Bank (EIB) has extended support to the Spanish renewable sector by signing climate action and environmental sustainability financing in Spain totalling record €5.18 billion in 2022, more than half of the total project signatures in Spain. Among notable projects, Iberdrola secured €550 million loan from EIB for the construction of a portfolio of projects with a total capacity of close to 1.8GW.

Spain recorded significant activity in mergers and acquisitions, making it one of the largest sectors in Europe for renewable transactions. In addition to M&A operations, several companies are considering going public, highlighting the strong potential of Spanish solar companies. As of LTM June 2022, a total of 93 M&A deals were announced in Spain resulting in a total deal value of over $27.4 billion.


Source: BNEF Global PV Market Outlook
Note: The above data, as sourced from BNEF, are based on a ‘low’ investment scenario

Growth prospects for the renewable energy sector,   particularly solar energy, look promising. A commitment to decarbonization, enhanced energy security, and untapped solar potential lays the foundation. 2023 is a key year for the ecological transition in Spain, where renewable energies could contribute   50%   of   the   nation’s electricity generation. As per UNEF, 40GW of renewable power has obtained the Environmental Impact Declaration in January 2023, which will become operational in the next three years.

As for Solar PV build, data projections indicate steeper growth until 2025, when it peaks. In subsequent years, however, annual PV build starts declining, although at a slower rate, until the forecasted year of 2030. As the October 2023 auction approaches, there is certainly a possibility of a change in the slowdown scenario, which will result in a considerable amount of capacity being allocated and built.

Investing in renewable energy in Spain offers a wide selection of plans tailored to investors’ risk profiles. However, there is a certain amount of scepticism as renewable energy investors have lost billions in subsidies promised by the Spanish government. Legal claims over the past solar boom in Spain have reached €8 billion; if not addressed, these claims will seriously jeopardize the country’s ability to attract new investments in the future.

In addition to reflecting Spain’s solar potential, the PV targets set out in the NECP address the persistent challenges of PV deployment in the country. Under the Royal Decree 23/2020, plants under development are obligated to speed up their permitting procedures, which puts heavy pressure on the administrative authorities, who are struggling to deal with the volume of applications. There have also been cases of resistance from certain local communities against utility-scale renewable plants. Therefore, ensuring regulatory stability and streamlining administrative procedures and network access are crucial, especially for smaller PV plants and self-consumption projects.

The government has taken vital steps to address at least one of the key areas, i.e., adequate grid infrastructure to ensure security of supply. In March 2022, the Spanish government approved the 2021-2026 plan for the development of the electricity transmission network. The plan entails an investment of €7 billion, within which nearly €1.9 billion is earmarked for the  integration of renewables and mitigating technical restrictions that prevent renewables from being absorbed.