Spain

Current Situation
Spain, which is located in the Iberian Peninsula in southern Europe, has an area of 505,990 km2, and is the fourth largest country of the continent. With an average altitude of 650 metres above sea level, it is the second most mountainous country in Europe after Switzerland. Spain is a country which is especially favoured by solar radiation thanks to its privileged location and weather. According to the data from the Instituto para la Diversificación y Ahorro de la Energía (Institute for Diversification and Saving of Energy) (IDAE), total solar radiation on a horizontal surface in Spain fluctuates between 3.2 kwh/m2 day in the most northern area of the territory to 5.3 kwh/m2 day on the island of Tenerife.

With regard to wind resources, despite the European Wind Atlas not considering it to be a very abundant resource except in areas such as Galicia and the Ebro Valley, reality has demonstrated that many suitable sites exist for the installation of wind farms, as can be seen in the diagram that demonstrates the evolution of the wind potential installed in Spain during the 1998-2008 period.

Primary energy in Spain presents trends similar to those of the European Union. The import of gas increases, oil drops slowly and nuclear energy has been maintained at similar levels since 1997. In general lines it can be said that Spain is dependent on coal and oil. In addition, during the last few years, Spain has experienced an obvious growth in energy consumption and energy intensity. In this scenario, renewable energies are on a rising trend.

Perspectives
To comply with the objective set by the European Union to cover 12% of the primary energy with renewable energy sources, the Spanish Government approved the “Plan de Energías Renovables (PER) 2005-2010” (Renewable Energies Plan [PER] 2005-2010), which includes additional objectives like renewable energies providing 29.4% of the electricity production and that 5.75% of the fuels for transportation originate from biofuels.

With reference to the objective of electricity production with renewables, the following table presents the expected production with these sources in 2010, the gross consumption of electricity foreseen in the same year and the level of performance from these variables.

In addition to the PER, it is also important to consider the “Planificación de los sectores de gas y electricidad 2007-2016” (Planning of petrol and electricity sectors 2007-2016) approved in 2007, when analyzing the renewable prospects in Spain.

The estimates speak of end energy consumption in Spain that will grow 2.5% annually until 2011 and 2.2% in 2011-2016. The increase in the weight of end use gas and renewables stand out, the decrease in oil products and the stabilization in the weight of electricity. For 2016, the contribution of renewable energies to energy end consumption will be 7.3%, 9,075 ktep. With regards to the final energy intensity, a drop of 1.4% annually is expected between 2006 and 2016. The consumption of primary energy will grow at a rate of 1.3% annually, reaching a total of 164952 ktep, in which 15.6% will be provided by renewable energies. The production of electricity corresponding to renewable energies will reach 383,882 GWh, which will be 34.9% of the total produced for 2016. In this sense, wind, hydroelectric and biomass energy will be the majority of the contributions. For 2016 it is also foreseen that renewables will be 40% of the power installed in the entire Iberian Peninsula.

Lastly, the “Estrategia de ahorro y Eficiencia Energética en España (E4) 2004-2012” (Spanish Saving and Energy Efficiency Strategy [E4] 2004-2012), approved by the government on the 28th November 2003, which defined the Strategy’s end result, the potential savings and measures to carry out with the aim at improving the energy intensity and prompt a change of convergence towards the international commitments on the subject of the environment.

A new Action Plan has been defined for the 2008-2012 period which focuses on the less visible sectors, designated vague (mainly transportation and construction), and on those that require new instruments oriented at a very fragmented objective public and with very diverse behaviour patterns. The objectives established in the Plan attempt to reach a savings of 11% in 2012, which is a percentage which is more demanding than the 9% established by Directive 2006/32/CE, on the efficiency of the final use of energy and energy services.

Some of the measures considered in this plan are the following:
Improve the energy efficiency and savings in the fishing and farming sector
Energy audits
Energy training courses for municipal technicians
Renovation of existing buildings’ envelope
Improve the energy efficiency of thermal and illumination installations in existing buildings
Development of cogeneration

Key Players
Key factors when explaining the development of renewable energies in Spain, the aspects relating to the legislation, the corporate fabric and also the existence of association, research institutes and national centres dedicated to promoting and boosting renewable energies in the country must be reviewed.

Mainly three support measures have been used in Spain to promote sources of renewable energies:
For electricity: special regulations for renewable energy producers have been created, in a manner so that the owner of the installation can opt to sell the energy at a controlled tariff, unique for all the programming periods, or sell said energy directly on the daily market, on the market in terms or through a bilateral agreement, in this case, receiving the negotiated market price plus a bonus. The amount of the bonus is fixed by the government. This system is regulated by Royal Decree 661/2007.
For biofuels: the hydrocarbon taxes are not applied and distributors have the freedom to buy biofuels.
For thermal uses: given that it is energy for self consumption, the option has been to subsidize the installations, reducing the initial investment.

Spain also has numerous companies whose main activity is the promotion of renewable energy installations or the manufacturing of components.

The activities of some of the most important companies are detailed below:
ABENGOA: It has various lines of action in the field of renewable energies. Abengoa Solar focuses on the promotion, design, construction and operation of electrical energy generation plants which take advantage of the sun as a primary source of energy and Abengoa Bioenergy is a producer of biofuels. Special note must be taken of the projects is it carrying out in thermoelectric power stations, with various initiatives in the works in Spain, such as the 300 MW Solúcar Platform, but also in the United States, where it will construct and operate one of the largest solar power stations in the world (Solana), a 280 MW parabolic cylinder power station with storage.
ACCIONA ENERGY: It is present in the principle clean energies, although it focuses its activity on wind. It is also present in other electricity generation technologies through renewable sources –biomass, minihydraulic and solar-, as well as the manufacturing of wind turbines of its own design and the production and marketing of biofuels. It also has investments in cogeneration. It also has research projects up and running to produce hydrogen from wind energy, manufacture more efficient wind turbines and optimize the production of biofuels among other fields of innovation.
GAMESA: one of the principle international manufacturers of wind turbines in the world and leader in Spain in the manufacturing sector, sale and installation of wind turbines. It has installed over 16,000 MW of its principle product lines in 20 countries, situated on four continents and currently has a portfolio of over 21,000 wind MW under promotion in Europe, America and Asia, and offices in 13 countries.
IBERDROLA RENEWABLES: is a company that is fundamentally dedicated to the promotion, construction and exploitation of power stations that use renewable sources of energy, as well as the sale of the electrical energy they produce. The company’s activity currently centres on wind energy and minihydraulic energy as well as thermal-solar energy. Additionally, it has begun to develop other technologies like biomass and tides. Currently, its total power installed -at the end of 2008- has been over 9,300 megawatts (MW).
INGETEAM: Ingeteam’s Energy Division centres its activity on the design and manufacturing of power converters, electric generators and control equipment, as well as to provide comprehensive solutions for the development of electric generation power plants. They have a wide range of products and services in the areas of Wind Energy, Solar Photovoltaic, Hydroelectric, Thermal and Biofuels.
ISOFOTÓN: its origins go back to 1981 when they first introduced a technology to manufacture photovoltaic cells from silicon wafers. In 1985 they incorporated the technology to manufacture thermal collectors and currently have a production capacity of 180 MW by photovoltaic and 70 MW (100,000 m²) by thermal. It also offers its clients expert advice, design and installation services for all types of Solar Energy Systems.

In the section of entities dedicated to promoting the development of renewable energies, IDAE (Institute for the Diversification and Energy Saving) stands out, a public company attached to the Ministry of Industry, Tourism and Commerce, which is in charge of managing the measures and funds destined to governmental plans related with renewable energies and energy efficiency in conjunction with the Autonomous Communities. It also carries out actions of promotion, advice, development and financing of technological innovation and repeatable projects.

The Centro Nacional de Energias Renovables (National Renewable Energy Centre) CENER was created in 2002 to boost the development of renewable energies; a centre specialized in applied research, the development and promotion of renewable energies and it is recognized nationally and internationally with prestige.

Another entity that stands out in research is CIEMAT, which aims to generate knowledge and technology in the field of energy, both from renewable and conventional sources. Some of its activities are to develop research, development and promotion programmes in solar energy concentration, area in which CIEMAT can consider itself a centre of European reference, as well as in wind, photovoltaic and biomass. We can also find regional and local energy agencies throughout the country, such as the Ente Vasco de la Energía (The Basque Energy Board) (EVE) or the Instituto Energético de Galicia (Energy Institute of Galicia) (INEGA).

Lastly, numerous associations in the field of renewable energies exist in Spain; the most important are listed below:
Asociación Empresarial Eólica (AEE)
Asociación de Productores de Energías Renovables (APPA)
Asociación Solar de la Industria Térmica (ASIT)
Asociación de la Industria Fotovoltaica (ASIF)
Asociación de Agencias Españolas de Gestión de la Energía (EnerAgen)

Job demand
There are a considerable number of companies in Spain that carryout some type of activity in the field of renewable energies. They are found mainly in the communities of Madrid, the Basque Country, Navarre, Catalonia, Andalusia, and Valencia. The greater part of these companies falls into the category of small and medium sized enterprises (over 80%). The approval of the different plans and laws anticipate the securing of its proposed objectives will suppose the creation of numerous jobs.

According to the European Commission Communication “Energy for the future: renewable sources of energy”, 5 times more jobs are created in renewable energies compared to traditional energies in equally installed power. Furthermore, the positive effect of renewable energies is increased if we take into account the characteristics of employment generated, since many of the jobs created are created in areas with reduced employment opportunities such as rural areas.

The estimates for the Renewable Energies Plan in Spain indicate that in compliance with the objectives established, up to 200,000 jobs could be created by 2010, taking into account both direct and indirect jobs, although the plan itself advises to be cautious with the data. Two national employment observatories conducted a study in 2007 and 2008 on renewable energies and employment in Spain, below are some of the conclusions they obtained:
ISTAS Study “Energías Renovables y generación de empleo en España – 2007” (Renewable Energies and Employment in Spain – 2007)
The greater part of the employment is currently located in the construction of new energy generator installations, the installation and maintenance, followed by the manufacturing of equipment.
Many of the jobs that do not require high qualifications are subcontracted which makes it difficult to offer data.
The jobs related with construction and installation are stabilising and positions related with operation and maintenance are beginning to be demanded.
The short term changes foreseen are the development of marine wind energy and the trade implementation of thermoelectric solar energy.
The greater part of the companies subcontract different services that sometimes do not enter into the statistical data and can also be considered employment related with renewable energies.

ECOEMPLEO Study “Situación y tendencias del empleo medioambiental en España - 2008” (Environmental Employment Situation and Trends in Spain - 2008)
An active and dynamic business sector exists in the wind field for those who maintain high growth expectations for the future.
The growth of photovoltaic solar energy is impeded by economic barriers which, if they are overcome, will determine the evolution of employment in the sector.
There exist very favourable resources for the development of thermal solar energy such as the new Technical Building Code and the measures foreseen in the Spanish Renewable Energies Plan.
Employment growth in the biomass area will be moderate because the incentives in the production of electricity in this field are few.

Spain

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