Potential Revival of Spain's Solar Industry Hinges on Future Projects and Supply Chain Developments
The resurgence of Spain's solar industry remains uncertain as major projected factory developments for 2030 could significantly alter the sectors landscape. Currently, Europe's solar cell production capacity requires a twelvefold increase to meet module deployment targets, with a German company dominating solar-grade polysilicon manufacturing across the region.
Turkey now surpasses Italy, Germany, Spain, France and the Netherlands combined in solar module manufacturing capacity, according to a recent pan-European supply chain map compiled by Sinovoltaics. This map encompasses 178 production plants and projects across approximately 25 countries, indicating a shift in manufacturing hubs.
However, if the announced new factory projects materialise, Europe's solar capacity could expand notably by 2030. Spain, in particular, might experience a renewed manufacturing boom if these plans are realised. Sinovoltaics' tracker reports the current regional module capacity at 24.2 GWp, with Turkey accounting for over half. Meanwhile, the regions capacity for solar cells stands at 5.3 GWp, with a mere 1.2 GWp for ingots and wafers. The regional polysilicon capacity, mainly supplied by Germany's Wacker, totals 27.6 GWp, though much of the regions silicon production outside Wacker is of lower metallurgical grade unsuitable for photovoltaics.
Addressing this challenge, Dricus De Rooij, CEO of Sinovoltaics, highlights that Europe has long debated relocating solar manufacturing but remains concentrated in Turkey rather than within the EU. The complex stages of cell, wafer, and polysilicon production are largely absent at scale across the continent. Excluding Turkey, EU manufacturing capacity shrinks further, with only 9.7 GWp of modules, 1.2 GWp of cells, and 0.2 GWp of ingots/wafers, far below the nearly 76 GWp required by the Net Zero Emissions Industry Law for 2030, which aims for 40 percent local deployment.
Spain currently hosts limited manufacturing capacity, including Atersa with 0.34 GWp of modules, Tamesol with around 100 MW, Escelco with slightly over 70 MW, and Solaico with 60 MW projected for 2027. Yet, plans for expansion are ambitious. Several major projects are announced, including Sunwafe's proposed factory for 20 GW of wafers and ingots, potentially creating one of the largest solar manufacturing hubs in Europe. Iberdrola's collaboration with Exiom, Greenland Gigafactory with 5 GW covering modules and cells, Solar Organic Centro Espana with 10 GW of solar modules, and Silicon Valen's 5 GW capacity for modules, cells, and ingots also point towards a strategic push.
If these projects come to fruition, Spain could potentially revive its ailing solar industry, aligning with European decarbonisation goals. The unfolding of this industry resurgence depends on project confirmation, geopolitical stability, and supply chain resilience, which altogether will determine Spain's future role in Europe's solar manufacturing ecosystem.