Spain has experienced a renaissance of solar PV developments thanks to the emergence of private/corporate PPAs and merchant risk models that have replaced previous government-supported schemes. There are well over 100GW of solar PV projects awaiting grid connection offers and dozens of GW with guaranteed connection points. Spain currently has only ~10 GW of Solar PV in operation (2020), compared to 40GW in Germany.

Spain has one of the highest solar radiation in Europe, if not the highest and the north has good wind conditions. The labour force is both renewables savvy and very cost-competitive. Finally, the grid infrastructure is reliable. This presents an opportunity to build reliable solar PV and Wind generation infrastructure at one of the lowest LCOE possible.

Peak demand in Spain sits currently at ~35GW, there are 3GW of interconnectors with France and 6GW more in planning/construction which will allow greater evacuation capabilities. Spain’s load curve profile peaks during the afternoon matching a typical solar PV generation profile for a significant amount of time during the day. Such matching profiles allow solar PV generators to obtain premium prices over baseload.

Short term future energy prices are on the rise, averaging above 50€/MWh. Moreover, utilities are opening up to negotiate long-term PPAs (i.e. 10 – 15 years) and there is quite a lot of momentum right now. It is a good opportunity to enter the Spanish market and acquire high-quality assets which can be built at a very competitive price. The whole value chain is compressing margins and assets can be built at a very competitive price.

New Sparta Iberia (NSI) wants to be your asset management of choice. We currently have assets under management in Spain and aspire to continue growing our client base there. We speak the language and understand the local administrative procedures. We have the platform to provide you with an excellent turnkey asset management service. We also have access to developers with high-quality pipelines of projects. Please reach us for more information.