Spain’s electricity consumption fell 2.3% for a second straight year in 2023
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Electricity consumption in Spain experienced a consecutive 2.3% decline in 2023 for the second year in a row, sparking concerns about a surplus in supply.
This trend is particularly worrisome as the renewable sector expands at a faster pace compared to the gradual decline of fossil and nuclear-fueled sources.
As renewable sources set new records and the government aims to significantly boost its share in the energy mix in the upcoming years, the subdued demand for electricity poses a growing challenge for the renewable industry.
According to Thursday’s provisional data from grid operator Red Electrica, Spain’s electricity demand totaled 244,686 gigawatt hours (GWh) in the past year, marking a 2.3% decrease from 2022.
The decline was primarily influenced by reduced demand from Spain’s industrial consumers, who continue to grapple with the repercussions of the energy crisis.
On Wednesday, the industry lobby group APPA Renovables advocated for policies aimed at bolstering electricity consumption, including the promotion of electric vehicle adoption.
Last year, renewable sources, including wind and solar, achieved a historic milestone by generating a record-breaking amount of energy, constituting an unprecedented 50.4% of the electricity produced in Spain, as per data from Red Electrica.
In a notable shift, wind farms surpassed gas plants to become the primary source of electricity in the country, meeting over 23% of the total demand.
The contribution of gas plants, specifically combined cycle power plants, to the country’s electricity consumption experienced a significant decrease, comprising approximately 17%, down from nearly 25% in the preceding year.
The deployment of renewables in Spain faces various challenges, with electricity demand being just one of them, especially as the country strives to accelerate efforts to meet its ambitious green objectives.
APPA cautioned that diminished wholesale electricity prices are impacting profitability, and major utilities like Endesa and Naturgy have indicated a deceleration in the development of renewable energy.
This is attributed to the combination of high-interest rates and escalating debt costs.
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