- Posted by: criss
- Category: Global PV Market Insights Report
1. Brief Intro-Spain
Located on the Iberian Peninsula in southwestern Europe, Spain is one of the southernmost countries in Europe, facing the African continent across the Strait of Gibraltar. With 506,000 square kilometers national territorial area, it is the fifth largest country in Europe with a population of 46 million. Spain’s economy is developed and it is the fifth largest economy in the Europe Union. Its GDP ranks 13th in the world, and its per Capita GDP ranks in the top 30 in the world.
The Spanish economy went down after the 2008 financial crisis. It has only gradually bottomed out since 2016, and the current economic situation in Spain is still in the process of recovering.
The solar radiation in most parts of Spain is 1400-1800KWH/m2, which is the best country for solar resources in Europe, and is also superior to most countries in China, the United States, Japan and others.
Adequate sunshine irradiation resources have encouraged the Spanish government to significantly develop renewable energy and take solar as one of the main direction. The EU signed the directive (EU) “Promotion of the use of the energy from renewable sources” in 2009 and 2018. The specific target is to achieve 20% renewable source of the EU’s energy consumption by 2020, and by 2030 it will reach 32%.
On this basis, the Spanish government actively implemented the renewable energy target in response to the EU. In February 2019, the Spanish National Energy and Climate Plans (NECP2021-2030) was released, suggesting that renewable energy accounts for 42% of the final energy consumption in 2030. The installed capacity reached 120GW and the power generation accounted for 74%. Realize 100% renewable energy in the power generation by 2050.
Wind energy and solar energy constitute more than 70% of the 2030 renewable energy plan, of which the solar installed capacity plan targets: 8.209GW in 2020, 23.404GW in 2025, and 36.882GW in 2030.
2. Solar Power Development
The total domestic power generation in Spain has not increased for last 10 years, but the renewable energy power generation has increased from 57,798 GWH in 2007 to 100,314 GWH in 2018, accounting for more than 38%, which has exceeded the EU’s renewable energy target. However, there is still room for development from the Spanish government’s plan to generate 74% of renewable energy in 2030 and 100% in 2050.
In terms of installation capacity, the installed capacity of renewable energy such as solar wind energy has exceeded the installed capacity of traditional non-renewable energy. Up to April 2019, the total installed capacity of renewable energy is 52GW, and there is still enough space for development according to the government plan of 120GW in 2030.
By the end of 2018, wind and hydro power remained the largest category of total renewable energy installed capacity. Solar accounted for 9%, ranking 3rd, with a cumulative total installed capacity of 5,146 MW.
Looking back at the development of solar PV installed capacity in Spain, it developed rapidly before 2013. In 2014-2018, due to the cancellation of FIT and anti-dumping against PV modules from China, the development became slow. Since 2019, the dumping and MIP policy was canceled, and the 2017 auction projects will be installed in 2019. It is expected that there will be a leap in new installations. In 2019, the new installation will exceed 4GW, and the total installed capacity will be achieving a government goal of 8.4 GW.
3. Related Price and Policy
- Development Target and Policy
EU: In 2009 and 2018, respectively, the“Promotion of the use of the energy from renewable sources” was signed, with the specific goal of achieving 20% renewable of the EU’s energy consumption by 2020, and by 2030 it should reach 32%.
Spanish government: In February 2019, the Spanish National Energy and Climate Plans (NECP2021-2030) announced that renewable energy accounts for 42% of the final energy consumption in 2030, with installed capacity of 120GW and power generation of 74%. Realize 100% of the generation of renewable energy in the power generation industry by 2050. Wind energy and solar energy constitute more than 70% of the 2030 renewable energy installed capacity plan, of which the solar installed capacity plan targets: 8.209GW in 2020, 23.404GW in 2025, and 36.882GW in 2030.
Before 2013, PV projects in Spain could enjoy almost the highest FIT rate policy in the world, when PV grid-connected prices were as high as 0.13-0.28 euros/kWh.
Since 2013, the Spanish government has been under financial pressure to stop all incentives for PV systems. After canceling the FIT plan, Spain adopted the market transaction mode instead of the grid-connected electricity price subsidy. The PV power station sold electricity through the spot market (OMIE) without state subsidies (with minimum guarantee, but still far below the wholesale market price). Or sign a 5-15 year Power Purchase Agreement (PPA) to achieve power plant operation and maintenance profit.
- The MIP and anti-dumping Policy
The China-Europe MIP agreement was launched in August 2013 with the China-Europe Solar anti-dumping policy.
Specifically, the intention of the EU to sign the agreement is to require companies to sell solar products (including solar cell and module) to Europe at a price higher than the minimum import limit price(MIP), and the annual sales volume must be limited to a certain quota; When other Chinese manufacturers export Europe(not in MIP manufacturer list), they are required to pay 47.6% anti-dumping duties. The agreement was originally limited to 2 years. However, in the fall of 2015, the EU Prosun applied for the first expiration review of the commitment of the European Commission, resulting in the extension of the MIP measures in March 2017 for 18 months.
On August 31, 2018, the EU announced that the MIP and anti-dumping policies will not be extended after they expire. At midnight on September 3, 2018, the EU ended all above policy against solar cells and modules from China.
4. Project Information
After the FIT subsidy was abolished in 2013, the development of solar in Spain fell into stagnation. In the three years of 2014-2016, there was almost no new solar power generation.
From May to July 2017, Spain held a new renewable energy auction. Under the repeated complaints and efforts of the solar industry, it was finally determined that Spain will have 3.9 GW of new solar power generation connected to the grid in 2019. Wind energy is 1.13 GW. According to regulations, these projects must begin to supply power to the grid by the end of 2019.
5. Solar Module Import (from China)
China’s PV module exports began to increase in July 2018, and then rose monthly til March 2019. In March, exported to Spain 390.1MW, ranking seventh in China’s PV module exports. If the Spanish PV project is successfully implemented, the annual export volume of the Spanish market will reach 4GW in 2019, and the cumulative installed capacity will reach the planned 8.4GW.
Type of module: Mono and poly solar panel in 72cells, due to most of the installation will be ground mounted, and poly is much more preferred, but mono will coming up soon in next half of 2019.
Spain has excellent solar resources, and the government’s PV development plan has clear goals and huge development space. Since 2019, many unfavorable factors, such as the MIP policy and the anti-dumping, have been canceled. The FIT policy cancellation since 2014 has also been digested by the market over time. It is estimated that China’s annual export of solar modules to Spain will reach 4GW in 2019.
For the PV project before the deadline of 2022, the auction will be held in 2019, we will pay attention to the project auction progress.
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