Spain is one of the world leaders in the renewable energy sector, both in wind, hydraulic and solar energies and, in the-not-too distant future, in floating offshore wind energy as well, at least that’s what it aspires to if, as it foreseees, the circumstances are right for it. Proof of this leadership is the fact, among other indicators, that 2023 was the most renewable year in Spain’s history, with an all-time high of 135,000 MGh of production, mainly solar and photovoltaic, much more than nuclear energy and gas combined. Unlike the 1990s, when coal accounted for 40% of electricity, in recent years, especially as of 2020, renewable energies represent 50% of electricity generation, in such a way that the energy mix is nowadays made up of 50% renewable energies and the remaining 50% non-renewable ones.
This development is not unrelated to the fact that the European Union had approved on December 11, 2018, the 2018/2001 Directive, of the European Parliament and of the Council, on the promotion of the use of energy from renewable sources, as an important package of measures to reduce greenhose gas emissions and comply with the Union’s commitment under the 2015 Paris Agreement on Climate Change. Through it, the Union tried to promote the security of energy supply, sustainable energy at affordable prices, technological development and innovation as well as technological and industrial leadership, with a view to set a binding target for the overall share of energy from renewable sources in the Union’s gross final consumption of renewable energy sector in 2030.
According to it, Member States had to ensure that the share of energy from renewable energy in 2030 is at least 32%. So, the Spanish Government, in order to transpose this Directive into internal law, adopted on November, 22, 2019, the Royal Decree 17/2019, to develop projects and programmes for integrating renewable sources into the energy system, as well as to build transmission and distribution grid infrastructure, intelligent network, storage facilities and interconnections. As a consequence of this double regulatory framework, as well as the incentives associated with it, the renewable energy sector experienced an exponential growth, turning Spain into a world leader for the innovation and technology applied to the different types of renewable energies.
A recent example of the Spanish most innovative technology in the renewable energy sector is the floating offshore wind energy, a type of energy that will allow to reach depths of more than 50 meters, where it is unfeasible to install gigantic wind turbines on fixed foundations. At the moment, Spain is, at European level, the country with most R+D facilities in which platforms, new materials and floating wind elements are being tested; and, globally, the country that has 15 out of 50 platforms on which wind turbines are being installed on a trial basis. According to the Spanish National Energy and Climate Plan and the Roadmap for Offshore Wind, the goal is to have an installed capacity, throughout 19 areas of 5 maritime zones, of 3 GW by 2030, which will allow the development of the necessary industrial fabric to bring these solutions to other countries.
As far as the Asean countries are concerned, they are still at a crossroads, a crossroads characterized, on the one hand, by their reliance on fossil fuels, and, on the other, by their transition to renewable energy sector. The most important among them both in territory and population, such as Indonesia, Malaysia, Thailand, The Philippines and Vietnam, have developed their own plans to meet COP21 or COP26 goals, sometimes under the multilateral umbrella of the Just Energy Transition Partnership (JETP), and other times under the unilateral plans of their own, to mobilize public and private financing to support this transition and achieve zero Greenhouse Gas Emissions (GHG) by 2050. Renowable power capacity, power grids and infrastructure and enabling technologies (storage) will need an investment of USD 5 trillion over this period.
Having said that, if Spain has the technology and the resources to develop renewable energies and the Asean countries have the need for both, it seems that we face a situation mature enough for both parties to take mutual benefit from it. Interesting projects in different renewable energies, such, in the case of renewable energy in the Philippines, 434 in solar energy and 232 in wind energy, as per the data I have; a predictable, stable and secure regulatory framework; and last but not least green technology incentives, both tax allowances and tax exemptions, constitute an attractive invitation for Spanish contractors, hence the importance for them to monitor any development and find the appropriate local partner, whether public or private, to do business together. Let’s talk.
Antonio Viñal
Lawyer
AVCO Legal
madrid@avco.legal
