Rystad sees Spain, Portugal as European renewable energy leaders
Rystad sees Spain, Portugal as European renewable energy leaders
Norwegian energy consultancy Rystad Energy describes the Iberian Peninsula as "a new European energy powerhouse". The company expects that by 2030, Spain and Portugal will generate 79 percent of their electricity from renewable sources.
Spain and Portugal are poised to become "European energy powerhouses", according to new research from Norwegian consultancy Rystad Energy. The Iberian peninsula is reportedly rich in renewable energy, with natural gas available from North Africa (rather than Russia), and electricity prices lower than in the rest of Europe.
"Iberia is well positioned to compete with, or even replace, the current Nordic energy industry hub," the study said.
In the first three quarters of 2022, Spain was the third largest energy exporter in Europe, after Sweden and Germany. However, electricity generation in the region is expected to grow strongly this year and continue to grow in the years ahead, driven largely by the massive expansion of renewables.
Rystad Energy calculates that the share of renewables in Iberia's energy mix will increase from 48% in 2021 to 64% in 2025 and 79% in 2030. Rystad Energy said such a growth rate would allow the region to lead the European energy transition and become "the European leader in the renewable energy industry".
Until 2021, electricity prices in Iberia are closely linked to those in other European countries. However, the introduction of price caps from June 2022 has had a notable impact on the region. In August, the average electricity price in Spain was €155 ($153.16)/MWh, while the prices in other selected countries were two to three times higher.
And thanks to long-term power purchase agreements (PPAs), such as the 2024 and 2025 annual power purchase agreements, energy prices in Spain are expected to be much lower than in France and Germany. Currently, Spain’s 2024 contract is trading at €113/MWh, less than half the price in France (i.e. €270/MWh).
"This shows that Iberia has a structural advantage, as the market currently believes. The region has a bright future for power generation," the report said.
At present, the installed capacity of renewable energy in the Iberian Peninsula has exceeded 50 GW, and onshore wind power plants account for more than 60% of the total power generation. The number of solar power installations here has continued to increase in recent years, and more are expected to be added.
"If all goes according to plan, solar PV will surpass onshore wind by 2030 and account for more than half of the region's renewable electricity generation," Rystad Energy said.
