Comment

Spanish renewables targets undermined by political uncertainty

Today, Wednesday 20th February 2019, Spanish Prime Minister Pedro Sanchez presented the country’s climate action plan for 2030 to 2050.

Commenting on the announcement, Wood Mackenzie Power & Renewables Senior Research Analyst, Brian Gaylord, said:

"The formal announcement consolidated a set of targets and policies announced by various government officials over the previous months.

"The plan maintains the ambitious goals of 100% renewable generation and emissions neutrality by 2050. Furthermore, it reaffirms plans to stop issuing licenses for gasoline-fuelled cars by 2040 - with a full ban taking effect in 2050.

"New, however, is an aggressive 41% renewable energy goal across electricity, transportation, and heating and cooling by 2030. This target exceeds the previously announced 37% threshold floated by his government and the 32.5% hurdle set by the EU. Most importantly, it more than doubles the 20% firm target for 2020 that Spain has not yet reached.

"Renewable generation’s share of electricity would reach 74% by 2030. This investment, estimated at 47 billion Euros by 2030, would be supported by regulatory stability, presumably via auctions and self-consumption electricity offtake.

"Uncertainty regarding the upcoming April election and the current political environment undermines the target ambitions. Ultimately, the implementation of an effective auction mechanism to support compliance with the targets will be necessary to reach these ambitious goals."

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