Spain to Boost Power Grid Spending to Over €17 Billion by 2030

Spain will increase investment in its electricity transmission network to more than €17 billion ($19.6 billion) through 2030, Energy Minister Sara Aagesen said on Wednesday. The revised figure is roughly 30% higher than the government's initial plan.

Aagesen described the programme as "the largest investment in grids in the history of this country," linking it to growing demand for electrification. The need for additional grid spending has been driven by Spain's rapid build-out of renewable energy capacity and by new demand from large power users such as data centres.

A public consultation on the plan drew a substantial rise in requests for power connections from industry, housing and renewable energy projects. General electricity demand accounted for 41% of the proposals received, followed by power generation projects at 40% and energy storage at 19%.

The investment is intended to support Spain's energy transition and the targets set out in its 2023-2030 National Energy and Climate Plan.

Separately, Aagesen said Spain will soon publish rules to create an auction-based capacity market for the electricity system. The mechanism will be open to power generation and storage companies as well as some customers. Participants would be compensated for being available to inject electricity into the grid or for cutting consumption during periods of peak demand or stress events.