Energy developers are navigating a 3-5 year journey from initial concept to commercial operations. Regulatory processes currently consume more time than the actual construction of power plants.
This analysis examines the reality of bringing utility-scale energy assets to market in Spain, revealing why the country's renewable boom is accompanied by extended development timelines and what this means for investors, developers, and Spain's 2030 energy targets.
Key Takeaways
- Total development timelines span 3-5 years from initial application to commercial operations, with regulatory processes accounting for 60-70% of total project time.
- Construction typically takes between 1 and 2 years, accounting for as little as 30% of the total timeline.
- Environmental impact assessments are the most significant bottleneck, taking up to 18 months to complete
- Regional variations are substantial: Extremadura and Andalusia are the easiest to build assets in, while Catalonia achieved only 2.2% renewable growth in 2023.
The development timeline
Construction timelines are speeding up. Iberdrola built its 500 MW Nunez de Balboa Solar plant in just 13 months. However, the total development process spanned 7 years (2012-2019), primarily due to the lengthy pre-construction phase.
Before developers can make final investment decisions (FID), projects must navigate a complex regulatory maze. RDL 23/2020 introduced mandatory administrative milestones for maintaining grid access and connection permits, fundamentally changing project timelines.
Environmental impact assessments dominate the pre-FID phase, typically requiring 12 to 18 months for completion. Projects must obtain favourable Environmental Impact Statements before proceeding to administrative authorisation, which adds another 6-12 months. Grid connection permits introduce additional uncertainty, with timelines ranging from 6 to 24 months, depending on whether the connection is at the transmission or distribution level.
