In 2025, investments in clean technologies across the Iberian Peninsula have surged to €557 million, marking a sixfold increase compared to 2024. The Cleantech for Iberia report highlights that the second quarter alone attracted €371 million, nearly double the first quarter’s figures. This trend underscores Iberia’s emergence as a key player in green industrial innovation in Europe.
Despite this rapid growth, concerns loom over the region’s electricity grid capacity and recent regulatory changes, which could hinder future investments. Bianca Dragomir, Director of Cleantech for Iberia, emphasizes that structural issues within the electricity grid are creating uncertainty for investors. Over the past five years, Spain has rejected over 30 gigawatts (GW) of industrial connection requests due to insufficient distribution capacity.
Dragomir identifies the inadequate electricity grid as the primary obstacle to the rollout of clean technology projects, crucial for the country’s reindustrialization. To address these challenges, Cleantech for Iberia advocates for a ‘Grid Pact’—a national strategy aimed at modernizing the existing grid into a flexible, digital, and dynamic infrastructure. They suggest using successful models from Sweden, the Netherlands, and the United Kingdom as frameworks for this transformation.
Delays in grid investment not only slow down renewable energy projects but also stifle flexible demand activation and impede further investments, Dragomir warns. The rejection of Royal Decree-Law 7/2025, which proposed urgent measures to enhance grid capacity and promote energy storage, sent a negative signal to international investors. This decree aimed to simplify procedures and prioritize renewable energy connections, which are critical for future growth.
Furthermore, regulatory proposals from the National Commission on Markets and Competition (CNMC) regarding grid remuneration have not met industry expectations. The CNMC’s proposed return on invested capital of 6.46% for the period between 2026 and 2031 falls short of the 7.5%-8% required by utilities. Dragomir states, ‘No one benefits from strategic projects being frustrated by the unavailability of grid access,’ emphasizing the repercussions for electricity consumers and the industrial sector.
Technical assessments following the Iberian blackout in April 2025 highlight the need for extensive system modernization. The report ‘No Green Deal without a Grid Deal’ by Cleantech for Iberia asserts that the backlog of connection requests far exceeds current grid capacity. The coalition argues for a shift from passive and oversized infrastructure to digitally managed systems capable of active response and inherent flexibility.
To align investment priorities and improve grid flexibility, Cleantech for Iberia has established a Taskforce on Grids in Madrid. Their goal is to assure investors that the Iberian clean technology sector can thrive without being hindered by grid limitations.
Dragomir concludes, ‘This is a pivotal moment. However, without a capable grid, Iberia risks losing its chance to become a benchmark in green industry.’
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