Investment in solar energySolar energy is expected to continue this accelerated growth in the next few years. The renewable auctions planned by the Spanish government will award at least 1.8 gigawatts of solar photovoltaic energy per year to interested parties until 2025. In the case of solar thermal energy, this figure stands at 100 megawatts per year. Furthermore, thanks to a decrease in the cost of solar technologies, the subsidy-free market is becoming increasingly competitive.
Corporate power purchase agreements (PPAs), a type of contract in which energy developers receive funding from third parties, are also growing in Spain. The country is currently considered one of the most attractive markets in Europe. It has, together with Sweden and Denmark, the cheapest and more competitive prices per megawatt. During the first quarter of 2021, this amounted to 34 euros per megawatt hour.
Self-consumption of solar energyThe installed capacity for self-consumption of solar energy has also seen a big growth in Spain. In 2020, a total of 596 megawatts for self-consumption were added to the available PV capacity in the country, which represents more than 20 percent of the value registered in the previous year. This addition elevated the total self-consumption capacity in the country to more than 1.5 gigawatts.
This has been possible thanks to the changes in legislation introduced during 2018 and 2019, when the administrative and economic barriers associated with the installation of solar panels for self-consumption were significantly reduced. Regarding the different Spanish regions, Catalonia had the highest number of installations at 160 in 2018, while the autonomous community of Asturias ranked last with only one.