The companies signed a framework agreement to develop ground-mounted, utility-scale solar projects across the Iberian country. Some of the assets under construction are already connected to the grid, while others will allow Shell to participate in upcoming grid capacity auctions.
Shell entered the Spanish renewable energy market in 2018, signing several solar power purchase agreements with energy providers such as Solaria and Suno Capital. According to Enerdatics research, Shell's recent partnership with Green Tie Capital represents a significant step forward for the company's renewable energy generating business in Spain and aligns with its strategy of increasing onshore renewables in Europe. In May of this year, the company bid on a 4.5 GW pipeline of utility-scale solar assets from Q-Energy. Verbund paid $1.1 billion for the projects, which were concentrated in the Castilla-La Mancha region of Central Spain and Andalusia in Southern Spain.
Since 2021, Spain has emerged as Europe's dominant geography for solar energy investments, accounting for more than 16 GW of partnerships for under-development assets. The rest of Europe, on the other hand, has accounted for 14 GW of collaborations. During the last two years, the major players in Spain's solar sector have been Shell, Prodiel, Everwood Capital, and Renewable Power Capital. The country is currently preparing for its third and fourth renewable energy auctions, which will take place this October and November. Through both rounds, a total of 2.3 GW of new capacity will be tendered. Spain also proposed a 5.8 GW grid capacity auction in Jun'22, which will be solely focused on grid connections for renewables and energy storage assets.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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