Spanish Power Companies Warn Of €4.5-6.3 Billion Annual Grid Investment Needed

 

Spanish power companies warn of €4.5-6.3 billion annual grid investment needed; 80% of nodes saturated, hindering energy transition.

 

The Spanish Electricity Association (EEA) has warned that a failure to invest in the grid in a timely manner will hinder the energy transition process. Speaking at the Genera Energy Expo 2025, the association stated that to support large-scale renewable energy deployments, electric vehicles, energy storage, and data center demand growth, €4.5 billion to €6.3 billion annually will be needed for distribution network upgrades by 2030. Over 80% of distribution nodes are already saturated, and the regulatory framework urgently needs to be aligned with actual investment needs.

 

Industry data shows that electricity demand is projected to grow by 33% to 54% between 2025 and 2030, primarily driven by industrial electrification, electric vehicles, and energy-intensive digital infrastructure. Distribution companies emphasize the urgent need for capacity expansion and accelerated digitalization, while eliminating administrative bottlenecks and establishing a system-value-based access priority mechanism.

 

Energy storage suppliers and representatives from the Ministry of Ecological Transition agree on the need to improve voltage control capabilities, strengthen short-term balancing services, and establish a medium- to long-term capacity market. Implementing the new operating procedure 7.4 is crucial to ensuring the stability of renewable energy grid connection. All parties agree that a safe and resilient energy transition path needs to be built through government-enterprise collaboration.