In Belinchón, about 50 km south of Madrid, one of Spain’s largest solar energy projects is underway. After groundwork and installation of metal pillars, rotating solar panels — imported from China — will be connected to the grid next year.
This project reflects a wider trend: In 2023–2024, Spain commissioned more solar capacity than any European country except Germany. The country’s total installed solar power reached 32 GW, and renewables now account for 66% of its energy mix.
Spain occasionally produces so much solar power that market prices drop to zero or even become negative. This creates challenges for producers, who invest in storage batteries and hydropower, while grid operators must balance fluctuating supply and demand to avoid blackouts.
An extensive blackout in April 2025 exposed infrastructure constraints: the grid can’t always handle peaks, and conventional power sources are insufficient for stable operation. Investment interest has cooled because of low prices, prompting the government to accelerate regulatory changes for energy system modernization.
Spain’s potential as a European data hub remains, but industry prospects now hinge on updating networks and managing supply and demand balance. Whether Spain will lead in clean energy or face new risks remains an open question.
