Spain To Spend $18B on 300 Clean Energy Projects

The Spanish government has authorized the construction of nearly 300 clean energy projects with a capacity of more than 28 gigawatts, representing a combined investment worth over 17 billion euros ($18.4 billion). 

The projects are part of the country’s goal to raise the share of renewables in its energy mix to 81% of the total by 2030, up from about 50% now.

Spain has set some of the ambitious clean energy targets in Europe. Last year, Spain reaffirmed its goal to close all its nuclear plants by 2035, with the management of radioactive waste and dismantling of the plants estimated to cost ~20.2 billion euros ($22.4 billion) to be financed by a fund supported by the plants' operators. 

Spain’s hardline stance came at a time when Europe is warming up to nuclear energy in a bid to enhance the continent's e energy security amid the global energy crisis triggered by Russia’s war in Ukraine. 

For instance, back in 2022, Finland's Green Party voted overwhelmingly to categorize nuclear power as a form of sustainable energy after decades of strong opposition. Finland generates a third of its electricity from nuclear power compared to 18.6% in the United States. Meanwhile, German and Japanese citizens have become more receptive to nuclear power.

Spain was the second European country after Italy to withdraw from the Energy Charter Treaty over the protection of fossil fuel investments. The ECT is a European energy treaty created in 1998 to offer protection to companies investing in the energy industry and secure energy supply in the region. ECT has, however, in recent years been used by both fossil fuel and renewable energy companies to sue governments for regulation changes that threaten returns on specific investments. 

German energy companies RWE and Uniper sued the Netherlands for 1.4 billion euros ($1.5 billion) and 1 billion euros ($1.1 billion), respectively, as compensation for the Dutch government's plan to phase out coal by 2030. Early dissatisfaction by Spain and Germany on ECT being used to protect fossil fuel interests led to an avalanche of defections by other European nations that forced the European Commission to withdraw from the treaty in 2023.  

By Alex Kimani for Oilprice.com

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