Spain saw a boom in solar installations last year. What were the drivers?
Miguel Giménez: The boom in solar installations in Spain last year can be attributed to several key factors. First and foremost, the government’s strong commitment to renewable energy and its ambitious targets for reducing carbon emissions have provided a solid foundation for the solar industry. Financial incentives have also played a significant role in stimulating investment in solar projects. Moreover, the falling cost of solar panels and associated technologies, along with the increasing recognition of solar energy as a reliable and sustainable power source, have made it a more attractive option for both businesses and homeowners. The growing awareness of energy independence, coupled with the rising costs of traditional energy sources, has made solar energy a compelling solution. Additionally, Spain's excellent solar radiation levels – among the best in Europe – make it an ideal location for large-scale solar power generation. Our market is large but highly concentrated on utility-scale projects; an approximate figure from last year was 5 GW for utility compared to 2 GW for rooftops.
Will the solar market continue to grow this year and what are your goals?
Forecasting here is always complex, but indications suggest we will achieve the same figures as last year. For us, the main goal is to increase our market share. We expect the solar market in Spain to continue growing this year. The country is still on track to meet its renewable energy goals and the momentum in the sector is strong. With regard to K2 Systems, we aim to expand our presence in the Spanish market by providing advanced mounting systems that make installations easier, more efficient and cost-effective. We are focusing on both the residential and commercial segments, and on exploring new ways to contribute to the accelerating energy transition in Spain. Our goal is to solidify our position as a reliable partner in solar infrastructure development, providing cutting-edge solutions that cater to the evolving needs of the Spanish market.
K2 Sytems
Which segments are particularly interesting for you?
Our focus is on rooftop solutions, where we have many years of experience with our main material of aluminium and the various applications for pitched and flat roofs. Of course, our open-air solution has now also been getting some attention, not least thanks to its high quality and durability. We are particularly interested in the commercial and industrial segments of the Spanish solar market. These sectors present significant growth opportunities given the increasing number of businesses looking to reduce their energy costs and enhance their sustainability credentials through solar installations. In addition to this, the residential sector is also expanding as homeowners become more conscious of their energy consumption and seek ways to benefit from rising electricity prices.
What are currently the biggest obstacles in the market?
Our market is highly price-focused. The pressure in this direction is difficult in recent times. Additionally, regulatory complexity and approval processes can slow down the development of solar projects. While the Spanish government has made strides in simplifying these procedures, the pace of permitting and regulatory adjustments still poses a challenge, especially for large-scale installations. Finally, there is a need for further technological advancements and infrastructure improvements to ensure that solar power can be efficiently stored and distributed, as Spain – like many other countries – still faces challenges related to energy storage solutions.
What are the special characteristics of the Spanish solar market, also compared to the German or other markets?
As I mentioned before, we are very focused on utility-scale, and the price topic is also a central issue. Compared to other markets like Germany, the Spanish solar market stands out for its strong solar resource, rapid growth, favourable policies for self-consumption, competitive installation costs, and an increasing focus on solutions for self-consumption and energy communities. These factors present many opportunities but also challenges, especially regarding integration into existing grids and adaptation to different local environments. It's important to mention that the Spanish solar market stands out primarily due to the country’s excellent geographical conditions. Spain has some of the highest solar radiation levels in Europe, which gives it a distinct advantage over countries like Germany, where solar irradiation is lower. As a result, Spain can generate more solar energy per panel, which makes solar installations in Spain particularly cost-effective.
How far advanced is the digitalisation of the market – also in the distribution grids?
The digitalisation of the Spanish solar market is progressing steadily, though it is still catching up to other European markets such as Germany or the Netherlands. The deployment of smart meters, digital platforms for monitoring and managing energy consumption, and the integration of advanced software for predictive maintenance are all steps in the right direction. For us, this is a very important topic; our offer of digital tools is exceptional, encompassing calculation tools such as K2 Base, our monitoring system K2 Buddy and all the digital support that we offer. Customers can use K2 digital tools in all project phases: from planning and installation to project completion and documentation. Our digital solutions work seamlessly together to ensure that they can get their work done in the shortest time and with the least amount of effort.
Is there sufficient capacity for grid connections? How do grid operators operate?
The capacity for grid connections in Spain has been a significant challenge in recent years. As the solar sector continues to expand, particularly with large-scale projects, grid infrastructure must be modernised to keep up. While the Spanish grid operators are actively working on upgrading the network, there are still occasional bottlenecks, especially in areas where solar installations are booming. In the last Solar Forum that we joined, this was one of the main topics that we talked about, namely that the grid is not prepared for the incoming huge electricity demand that is needed in the not-so-distant future. At this Forum, it was clear to us that significant investments will be made to improve our grid in the years to come. Due to the regulatory and technical steps involved in connecting new power plants to the grid, the process for obtaining a grid connection can sometimes be slow, particularly for larger projects. However, as Spain continues to prioritise renewable energy, it is expected that grid expansion and upgrades will accelerate to meet the growing demand for solar power.
Thank you for the interview Mr. Giménez! The interview was conducted by Niels H. Petersen.
