Spain’s 2025 renewable surge meets a hard limit: is the grid the next bottleneck?

As per the official data from Red Electrica, in 2025, Spain positioned itself as one of Europe's dynamic clean energy markets after successfully adding renewable capacity of 8,852.7 MW. In this, solar photovoltaic (PV) dominated the state by adding 7,896.3 MW and the remaining 956.4 MW came from onshore wind.

With this expansion, Spain's leadership in renewable generation within the EU territory has been confirmed. However, the increased grid congestion is creating a new challenge for new connections, which holds the power to overturn the market outcome in 2026.

Cumulatively, Spain's total installed solar PV shifted to 48,130.6 MW and in 2025, the wind power closed at 33,150.3 MW. Nonetheless, the solar deployment stayed highly concentrated. There are five autonomous communities that hold nearly 80 per cent of the installed PV capacity.

These communities include Andalucía, holding 11,350.7 MW, accounting for 23.5 per cent. Followed by Castilla-La Mancha at 9,160.2 MW holding 19 per cent, Extremadura at 8,732.1 MW holding 18.1 per cent, Castilla y León at 5,277.1 MW holding 10.9 per cent and Aragon at 3,920.8 MW holding 8.15 per cent.

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In certain regions, the wind energy capacity is also concentrated, with Castilla y León taking the lion's share at 7,708.1 MW, which is 23.2 per cent. Following closely is Aragon with 5,973.7 MW, which is 18 per cent, then Castilla-La Mancha at 4,978 MW, which is 15 per cent and Galicia contributing 4,028.7 MW, which is 12.1 per cent.

On another note, the sector's medium-term goals did not alter and are aiming for 76 GW of solar capacity by 2030, which includes 19 GW from distributed generation and self-consumption, and 62 GW from wind installations.

Apart from installations, another vital constraint of the sector is the connection capacity and grid access, because in 2025, the developers had requested grid access for 40 GW, but merely 4.5 GW was being awarded. Following this, another rejection came for 25 GW, which was mainly due to the declining capacity, and the remaining 8.5 GW were being reviewed for approval.

Red Eléctrica's recently updated capacity maps represent 83.4 per cent of grid nodes, which are currently saturated. This not only hinders the integration of new renewable energy sources but also makes it difficult for large industrial consumers to connect. The gridlock continues as alarms for investors and project developers alike are rising continuously.

In accordance with these challenges, the major industry players are proposing solutions like implementing new capacity mechanisms, upgrading the current transmission infrastructure and pushing for more coordinated and timely grid expansion planning.

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Spain’s wind industry is urging the authorities to lay down clearer rules, provide stronger legal certainty and create a more competitive tax framework to ensure long-term sustained growth. In Galicia, a major hub for wind energy in the country, with over 90 projects and a total capacity of about 2.5 GW, projects are stuck in legal battles, causing delays and making investors uneasy.

Many cases have been made to the EU’s Court of Justice, showcasing the tangled web of regulations that complicate onshore wind development. Meanwhile, as the industry sees offshore wind as a key player for future growth and industrial progress, high costs, logistical challenges and a lack of detailed planning are still holding back large-scale projects, amplifying the demand for clearer policies and more stable regulations.

Despite these challenges, the project development is still deemed to be on the right track. According to data from Energía Estratégica, over 5 GW of solar PV capacity received the environmental permitting process in the first eight months of 2025, with Castilla-La Mancha leading the way at 1,924 MW.

Key players in this space include Zelestra, which is pushing forward with its impressive 887 MW REINA mega-project, along with Naturgy, Ignis and Iberdrola. Additionally, more than 33 GW of smaller projects have been submitted to regional authorities in the last year.

While being in a grid-saturated environment, energy storage is of rising importance in the integration of renewable energy sources. The Institute for the Diversification and Saving of Energy (IDAE) has recently allocated 10 GWh of storage capacity across projects in Andalusia, Castilla y León and Catalonia.

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As Spain heads into 2026, it boasts a robust pipeline of renewable projects and clear targets for 2030. However, challenges like grid saturation, sluggish permitting processes and regulatory uncertainties are still looming, threatening the progress made in 2025.

The focus is now shifting from merely adding more megawatts to ensuring that this new capacity can be effectively connected, integrated and operated reliably within a power system that desperately needs modernisation.

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