Growth in Spanish electricity generation will remain slow over our 10-year forecast period ascoal-fired and nuclear power projects are decommissioned. Non-hydropower renewable projects will be thegrowth driver over the next three years as 8GW of wind and solar capacity is brought online, after whichwe note the risk of growth stagnating. Cheap electricity imports from France will crowd out investment intonew projects in Spain.
Latest Updates And Structural Trends
We have upgraded our forecasts for gas-fired power output, as we expect it will be increasingly used tocover deficits from lower hydropower generation. We now expect that gas-fired power output will growat an annual average of 1.7%, increasing from 72.9TWh in 2017 to 84.4TWh in 2026. At the same time,we expect that coal-fired power generation will decrease by 7.3% annually as the government aims tolower its carbon emissions to comply with EU targets.