Renewable Reindustrialization in Spain: A Sustainable Opportunity for Economic Future

With a contribution of 15.31% of the national GDP in 2021, a turnover of around 734.026 billion euros, and with more than 2.76 million people employed (14.01% of the total Spanish employment), the industrial sector is one of the main economic engines of the country.

However, following a common trend in the West, its significance has been getting smaller. Although its specific weight remains important in the Spanish state, it’s still far from the European aim of achieving a 20% industrial participation in GDP.

Therefore, and action plan is required to tackle the challenges faced by industrial sectors and take advantage of crucial benefits to boost the economy and ensure a sustainable future.

Benefits of Reindustrialization

1. Creation of quality employment: The industrial sector is strategic for social and territorial cohesion because it promotes stability and economic development through higher quality, more stable, and better-paid jobs. This contributes to redistributing the population and supporting the well-being state.
2. Increase in productivity and exports: A strong and renewable industry would encourage innovation, technological development, and productivity, increasing exports in cutting-edge sectors.

Next Generation Funds for Sustainable Reindustrialization

Spain has a unique opportunity to carry out a sustainable reindustrialization. The European Union’s Next Generation funds offer significant financial resources to drive the development of key sectors and accelerate the transition to a low-carbon economy. Its investment in renewable energies, energy storage, and electric mobility will allow a sustainable and globally competitive future.

Renewable energies

The use of renewable energies is essential to ensure the energy future of a world without fossil fuels, especially to significantly reduce polluting emissions and mitigate climate change.

According to data from the Global Landscape of Renewable Energy Finance 2023 report, global investment in energy transition technologies grew by 19% in 2022 (1.3 trillion dollars).

Furthermore, renewable energies offer significant employment opportunities. According to IRENA, the sector employed approximately 11.5 million people worldwide in 2019, and it is expected that this figure increases to over 42 million by 2050.

Energy storage

Energy storage plays a crucial role in the effective integration of intermittent renewable energy sources. As its name suggests, it allows “storing” the excess of energy generated during periods of high production and using it when the demand is higher or when renewable energy sources are not available.

This ensures a constant and stable electricity supply, while providing great flexibility to the electrical system by regulating supply and demand. It also helps to stabilize the grid, improve efficiency, and reduce transmission and distribution costs. Worldwide energy storage capacity is estimated to increase by more than 10 times in the next decade, reaching 3,600 gigawatt-hours (GWh) by 2030.

Electric Mobility

Adopting electric mobility reduces the dependence on imported fossil fuels and diversifies the energy matrix. This improves security and reduces oil price volatility, explaining how 10.5 million electric cars were sold globally in 2022.

Strategic investment in research and development, favorable policies, charging and storage infrastructure, and specialized training in these sectors would bring benefits such as economic growth, job creation, emissions reduction, improvement in energy security, and the ability to export technologies and knowledge.

Power Electronics, a leading company for Spain’s reindustrialization

World’s leading manufacturer of solar inverters for photovoltaic plants, world storage leader, and with extensive research, development, and manufacturing of electric mobility solutions, Power Electronics is the model of a sustainable and technologically advanced company that should be promoted for reindustrialization in Spain.

The Valencian company has been standing out for decades in the renewable energy, energy storage, and electric mobility sectors, offering innovative and sustainable solutions ranging from power converters to electric vehicle chargers and storage systems, contributing to driving renewable reindustrialization in Spain and globally.