In 2016, the International Energy Agency (IEA) gave us the good news that electricity generation from renewable sources had reached its maximum power ahead of coal and other technologies. This was mainly due to high investment in solar and wind energy in China, India and the United States. Contact online >>
In 2016, the International Energy Agency (IEA) gave us the good news that electricity generation from renewable sources had reached its maximum power ahead of coal and other technologies. This was mainly due to high investment in solar and wind energy in China, India and the United States.
Its study entitled "Medium-Term Renewable Energy Market Report", indicated that in the next five years renewable energies would continue to be the fastest growing source of electricity generation, increasing from 23% of electricity generation in 2015 to 28% in 2021.
This growth would be different around the world and each country would have to promote policies for its sustainable development beyond market forces. The Paris Agreement provided a global boost for these energies and, with ongoing concern for air quality at an urban level, new lines of action were developed that highlight the importance of the development of renewable energies at urban and rural levels.
In this regard, Distributed Generation (DG), a concept is based on "the provision of electricity, changed from a centralised generation system to one that incorporates many small sources of generation (usually renewable) and installed close to the consumption point", and became the great alternative for the promotion of renewable energies in the coming years. We should not forget that the DG needs to "incorporate modern technology and have the support of the network of consolidated electrical systems".
Spain and Latin America have had to face different regulatory and market challenges for the development of renewable energy projects. Spain, after having been an inherent leader in renewable energies, has had to struggle in recent years against regulations that prevent new developments, processes and innovative business models.
Whilst Latin America has had to fight against high energy subsidies, against projects that are not financially sustainable, and especially against large hydroelectric plants, where the social-environmental aspects of their construction generally have secondary consideration. However, distributed generation in Latin America still has a high potential for development.
IRENA, the International Renewable Energy Agency, in a study on the Renewable Energy Market in Latin America, establishes the new emerging trends for renewable energy projects in the region. Most importantly these are energy safety and security, access to energy in isolated areas, environmental sustainability and economic competitiveness in a growing region.
In Latin America, investments in renewable energy totalled 80,000 million dollars between 2010-2015. Most projects have been in wind and solar energy, much more than in small and large hydroelectric plants.
This value continued to grow until 2021, especially in offshore solar and wind projects. So renewable distributed generation could be considered to be an important alternative for energy sustainability in the region, especially because of the following:
In Spain, where the indexes for meeting electricity demand reach almost 100% and the electricity system is mature, distributed energy from renewable sources is presented as an alternative for decentralised systems and self-consumption, especially at the urban level.
This type of energy generation needs to fight against restrictive regulatory frameworks and taxes that make its deployment increasingly more difficult. However, electricity distribution companies like Endesa are working to integrate this type of energy into their Smart grid projects at a local level. Even the grid operator, Red Eléctrica de España, is promoting activities to be able to achieve a more natural integration of renewables into the grid.
In the future, the new digitalisation trends in the electricity sector, the global targets for decarbonisation and the vision of a single energy market in Europe will somehow promote distributed generation projects and initiatives in Spain. The same is happening in Latin America, a region where there are many opportunities to promote this type of energy in its territory. The following deserve special mention:
In this regard, and despite the challenges that Spain and Latin America still have to face, there are interesting opportunities for distributed generation with renewable energies in their territories.
Information based on provisional data as of January 2024
Installed renewable power capacity in the Spanish electricity system increased by 4.6 GW in 2021 and by 6.2 GW in 2022. Additionally, the installed renewable power capacity increased by an additional 6.3 GW in 2023, which allowed installed renewable power capacity to reach 77 GW in the Spanish electricity system. This represents 61.3 % of total installed power capacity The integration of this new renewable capacity, mostly wind and solar photovoltaic, represented a significant boost in the energy transition and the fulfilment of the integration roadmap set out in Spain''s Integrated National Energy and Climate Plan (Plan Nacional Integrado de Energía y Clima [PNIEC]), with a 2030 deadline.
The electricity system in the Spanish mainland is also becoming increasingly cleaner, as there was an 8.7 % increase in installed renewable power capacity in 2023 compared to the previous year.
The 2.1 % increase in installed wind power capacity in 2023 is particularly noteworthy, making it the energy generation technology with the highest rate of installed capacity in the mainland, with a total of 30,162 MW, representing 25.2 % of all installed power capacity in the mainland electricity system.
Over the course of 2023, installed solar photovoltaic power capacity experienced the greatest increase within the mainland electricity system, adding around 5,500 MW to the generation capability. In 2023, solar photovoltaic energy, for the first time ever, became the second largest energy source, accounting for 20.8 % of the total installed capacity in the Spanish mainland (compared to 17.1 % in 2022) and surpassing combined cycle, which dropped to third place with a share of 20.5 % of the total installed generation capacity.
There were no significant fluctuations in the mainland''s non-renewable power capacity in 2023.
In non-mainland systems, there was an increase of 3.2 % in installed power capacity by the end of 2023. This increase is mainly due to the 7.6 % growth in installed wind power capacity and 28.5 % in solar photovoltaic compared to 2022.
The generation capability of the Balearic Islands electricity system experienced a 4.9 % increase in installed power capacity in 2023, due to the 38.1 % increase in installed renewable power capacity. At the end of 2023, installed renewable power capacity accounted for 16.9 % of the generation capability in the Balearic Islands. Installed solar photovoltaic power capacity in the Balearic Islands increased to 333 MW from 229 MW in 2022, representing an increase of 14.9 %.
In the Canary Islands, the installed renewable power capacity increased from 827 MW to 899 MW over the last year, representing an 8.7 % increase This growth means that the installed renewable power capacity in the Canary Islands accounted for 27.3 % of total Canary Islands generation capability by the end of 2023. Specifically, the increase in installed power capacity occurred in wind power, with a growth of 7.7 %, solar photovoltaic, which increased by 10.5 %, and other renewables, by 101.2 %.
The installed solar photovoltaic capacity in the Canary Islands has grown from 212 MW in 2022 to 234 MW in 2023 and remains the sixth largest source of generation in the Canary Islands mix. On 31 December 2023, solar photovoltaic capacity represents 7.1 % of the installed capacity in the island system (6.6 % in 2022).
Non renewable electricity generation
Total electricity generation
Visit this European Network of Transmission System Operators for Electricity.
The International Energy Agency works with countries around the world to design energy policies for a secure and sustainable future.
The International Renewable Energy Agency (IRENA) publishes extensive information on the global acceptance of renewable energy.
Stay informed of the latest events in the renewable energy sector through the Association of Renewable Energy Companies (APPA).
Find information of interest on Comisión Nacional de los Mercados y la Competencia.
Find information of interest on Ministerio para la Transición Ecológica y el Reto Demográfico.
Spain’s cumulative PV capacity under its self-consumption regime hit 5.24 GW at the end of December.
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