Hummingbird Insights-Clean Energy-Spain

Our thoughts are with everyone affected by the recent events in the Middle East. We hope you and your loved ones are safe, and that a swift and peaceful resolution follows soon.

In the near term, situations like these create uncertainty across global energy markets, but over the longer term they highlight something much more strategic: the growing importance of clean energy and the need to reduce reliance on external fossil‑fuel sources. Each disruption serves as a reminder of why accelerating the transition to secure, renewable, locally generated energy is not only necessary, but ultimately a real positive for the sector.

Against this backdrop, this edition of Hummingbird Insights focuses on Spain, a country that has become one of Europe’s most compelling clean‑energy stories. We explore Spain’s strong growth outlook, the technologies shaping its next phase, the regional advantages driving momentum, and the emerging investment opportunities that are positioning it as an increasingly important hub for renewable energy development across the continent.

Market Snapshot

Spain is a leader in Southern Europe’s energy transition. This is largely thanks to its geography. High levels of solar irradiation, strong and consistent wind resources, and a long coastline, give the country a natural edge in renewable power generation.

According to The Renewable Energy Institute, by the end of 2025 renewable energy sources accounted for 55.5% of Spain’s national electricity generation, keeping Spain on its overall trajectory of increasing renewable energy contributions to electrical supply.[1] Wind contributes approximately 23%, Solar 17% and Hydro 13%.[2]

Utility-scale solar photovoltaics have expanded rapidly in Spain, particularly in regions such as Extremadura, Andalusia, and Castilla-La Mancha. Spain’s solar capacity has increased from around 25 GW at the end of 2023 to over 50 GW by the start of this year.[3]

Onshore wind remains a mature and reliable technology, with major capacity concentrated in Castilla y León, Aragón, and Galicia.  Offshore and floating wind remain in their infancy but are gaining attention as future growth areas. It is hoped that Spain’s first public consultation on a draft ministerial order to set the regulatory framework for the countries first floating offshore wind tender, which opened earlier this month, is a significant step in meaningful development of this form of renewable energy generation.

Hydro is also significant and varies by reference to rainfall. Hydro stations are largely located in the mountainous areas of Northern Spain, an historically reliable renewable contributor.

In terms of human capital, there is rising demand for technical, commercial and regulatory expertise, to address the complexed and developing regulatory regime and ever changing technology.

Storage and Hydrogen - the next phase 

Energy storage and green hydrogen are expected to lead the next phase of Spain’s renewable energy ambitions for use domestically as well as export.

Spain’s Integrated National Energy and Climate Plan (PNIEC) has set a target of 22.5W of storage capacity by 2030. While under its National Hydrogen Roadmap, Spain aims for significant electrolyser capacity growth by 2030, with government projections targeting several gigawatts of installed capacity.  The Castellón Green Hydrogen Plant is Spain’s largest green energy project, comprising a 25 MW facility, being built by way of joint venture between BP and Iberdrola Espana. The plant is to produce around 2,800 t/year of green hydrogen, cutting ~23,000 t of CO₂ annually. The plant is expected to be operational in late 2026.

Policy and Investment 

Government and EU policy is playing a crucial role in accelerating growth. Competitive renewable energy auctions, long-term decarbonisation targets, and support for electrification have attracted both domestic and international investors.

Spain’s renewable energy sector remains an attractive investment opportunity for the medium to long term, with storage and hydrogen providing diversification from the existing leaders of solar and onshore wind. Some shorter-term challenges exist with grid capacity and the time taken for environmental and permitting.

The renewable energy sector has a small number of significant and dominate companies (such as Iberdrola), but also a range of mid-size and smaller independent operators who may have local or regional projects.

Given the complex regulatory regime, rapid changes in technology and an existing skills gap, experienced and insightful leadership will be needed to scale smaller projects to operation.

Takeaways

Spain has established itself as a leader in Southern Europe’s energy transition, leveraging abundant solar and wind resources to rapidly expand renewable generation. Government and EU support, competitive auctions, and investor interest continue to drive growth, while emerging sectors like offshore wind, energy storage, and green hydrogen, exemplified by the Castellón Green Hydrogen Plant, signal the next phase of Spain’s decarbonisation strategy.

As the instability across the Middle East reminds us of how fragile global systems can be, investing in a stable, clean energy future remains essential. If your organisation is scaling renewable energy, expanding into storage or hydrogen, or preparing for the next phase of the energy transition, having the right expertise in place will matter more than ever. We work closely with clean‑energy businesses to build resilient, future‑focused teams ready to deliver in complex and fast‑moving markets.

For professionals exploring their next opportunity in renewables, we welcome a confidential conversation about where your skills can have the greatest impact and contribution to the transition ahead.

Let us help position you to lead the transition with confidence.

Warm regards,

Mariken O’Donnell

Founder

Hummingbird Recruitment