Spain and Portugal as Pioneers in European Energy Transition and Industrial Competitiveness
Spain and Portugal are positioning themselves as key players in the European energy transition and industrial competitiveness in 2026. Their renewable energy assets established industrial bases and capacity for rapid scaling make the Iberian Peninsula a strategic hub in Europes quest for energy independence.
The Iberian region offers three critical advantages: some of Europes most competitive renewable energies a solid industrial foundation and the ability to quickly upscale energy solutions. These factors attract attention at forums such as the World Economic Forum in Davos where the Iberian Energy and Industry Transition Initiative (IETI) outlined a scenario that could generate up to one trillion euros in added value and nearly a million jobs by 2030.
An analysis by McKinsey and industry leaders emphasises that Spain and Portugal have the potential to lead Europes industrial and energy competitiveness. However realising this opportunity requires immediate coordinated action. The strategy involves five interconnected pillars.
The first pillar calls for reinforcing ambition and strategic coordination to develop and scale industrial ecosystems in high-growth sectors like renewable fuels molecules batteries defence technological enabling and artificial intelligence. The second emphasises regulatory alignment with competitiveness objectives by simplifying frameworks reducing barriers to investment and ensuring technological neutrality to lower costs.
The third pillar stresses accelerating infrastructure deployment focusing on critical networks such as electricity grids storage facilities transportation and logistics. The fourth highlights the importance of boosting innovation through increased investment in research and development for key sectors and technologies.
The fifth pillar targets enhancing talent productivity by expanding reskilling programmes integrating AI tools and offering fiscal incentives and visas to attract top global talent. This comprehensive approach hinges on swift decision-making cross-border cooperation and a shared vision that transcends immediate interests.
If Spain and Portugal successfully implement these strategies the Iberian Peninsula could emerge as a central driver for Europes renewed industrial and energy competitiveness supporting sustainability and resilience in the face of evolving challenges.