CMS Expert Guide to Agrivoltaics and Floating Photovoltaics in Spain

No, as of today no specific regulations on agrivoltaics projects have been passed in Spain (and the general regime on photovoltaic plants is applied mutatis mutanda). 

However, the Spanish Government is committed to agrivoltaic projects and, in Act 31/2022 of 23 December of the General State Budget for 2023 (Ley 31/2022, de 23 de diciembre, de Presupuestos Generales del Estado para el año 2023), it is expressly stated that “The Government will promote agrivoltaic energy…It will analyse factors that may affect its take-off, such as land use, compatibility with Common Agricultural Policy aid or other sectoral policies…. lines of aid will be set up to support the development of this type of projects.” 

Likewise, one Spanish region (Catalonia) has approved certain regulations and guidelines (soft regulations) on agrivoltaics, that: (i) expressly requires that agricultural activities (and the type of crop) are maintained during the whole lifespan of the photovoltaic plant; (ii) the photovoltaic plant does not negatively affect agricultural use (crop yield has to be maintained at least 60% of what it was before); and (iii) it allows the photovoltaic system to have a different owner from the owner of the land and agricultural crops (i.e. they do not have to be the same).

In Spain, there are several agrivoltaic projects under development and in operation. In 2024, there were 14 agrivoltaic projects with 1251.6 MW of installed capacity, mainly linked to winery exploitations and some of which are used as self-consumption facilities:

1. The 247 MW agrivoltaic project developed by Lightsource bp in land used for grazing sheep.
2. The 85 MW agrivoltaics project developed by Endesa in a cultivation of red pepper, broccoli, artichoke and thyme located at Murcia. This agrivoltaic project is an example of public-private partnership, as it was developed in collaboration with the Murcia Institute of Agricultural and Food Research and Development (Instituto Murciano de Investigación y Desarrollo Agrario y Alimentario).
3. The 56 MW agrivoltaic project developed by Baywa in a cereal cultivation land located at Alhendín (Granada). This was the first agrivoltaic project in Spain where a PPA agreement was executed.
4. 40 kW agrivoltaic project developed by Iberdrola in a vineyard located at Guadamur (Toledo).
5. The 15 MW agrivoltaic project developed by RWE (currently under development) to be located in Cassá de la Selva (Catalonia). CMS Spain was involved in this transaction and assisted in ensuring this project’s compliance with the new Catalonia regional regulations and guidelines.

All of: (i) the lack of a specific legal framework for agrivoltaic projects; (ii) environmental associations and experts debating the impact that agrivoltaic projects may have on crops, livestock and wildlife; and (iii) technical discussions on the negative impact that agricultural activities themselves may have on the maintenance of photovoltaic modules (e.g. the use of fertilisers), are the main factors which are slowing down the development of agrivoltaic projects in Spain (and the majority of developers still opt for pure photovoltaics).

The potential is enormous, given that:

• according to the latest studies carried out by the statistical office of the European Union (Eurostat), Spain has a high percentage of agricultural land compared to its total area (46.8%) and is, in absolute terms, the fourth largest agricultural producer in Europe;
• Spain is very well known for having some of the best solar conditions in Europe for operating photovoltaic projects (more hours of solar exposure) and already has an industry that is very familiar with photovoltaic energy; and
• the Spanish Government has demonstrated strong willingness to promote agrivoltaic projects and is very supportive of renewable production.

Yes.

In June 2024 the Spanish Government passed Order TED/765/2024, of 22 July, which establishes the regulatory bases for granting of subsidies for investment in innovative renewable energy and storage projects, as well as for the implementation of renewable thermal systems (Orden TED/765/2024, de 22 de julio, por la que se establecen las bases reguladoras para la concesión de ayudas a la inversión en proyectos innovadores de energías renovables y almacenamiento, así como a la implantación de sistemas térmicos renovables).

Agrivoltaic projects with storage systems are among those included in the subsidised projects (the subsidised amount will cover part of the project costs). The deadline to apply for these subsidies expired in November 2024, and the projects that were granted these subsidies must reach operational status before 31 March 2026.

They are partially regulated. In July 2024 the Spanish Government passed the first regulations on FPV, which was focused on FPV projects to be located in certain reservoirs or dams (embalses) owned by the Spanish government (and which could occupy between 5% and 15% of the surface of such reservoirs). The Royal Decree 662/2024 of 9 July established the regime to which the installation of floating photovoltaic plants in reservoirs located in the public water domain in hydrographic basins whose management corresponds to the General State Administration is subject, and which modifies the Regulation of the Public Water Domain, approved by Royal Decree 849/1986, of 11 April. (Real Decreto 662/2024, de 9 de julio, por el que se establece el régimen al que ha de estar sometida la instalación de las plantas fotovoltaicas flotantes en los embalses situados en el dominio público hidráulico en las cuencas hidrográficas cuya gestión corresponde a la Administración General del Estado, y por el que se modifica el Reglamento del Dominio Público Hidráulico, aprobado por el Real Decreto 849/1986, de 11 de abril).

This regulation is a milestone for FPV in Spain and demonstrates the commitment of the Spanish Government to promote and facilitate the implementation of these types of FPV projects.

However, (i) there are still many steps to be taken to regulate floating panels in other types of reservoirs, including those owned by the Spanish regions, in hydroelectric power plants, at sea, etc.; and (ii) it is expected that, in the coming years, more regulations will be approved related to this matter.

In Spain, there are already certain FPV projects under development or in operation:

1. The 1.375MW FPV project “Sierra Brava 2.0”, developed by Acciona at Zorita (Cáceres). This project was the first FPV project to be operated in Spain and started operations in 2020.
2. The FPV pilot project “Hyares”, which combines FPV with hydraulic systems for irrigation, located at La Rinconada (Seville). The project was developed by multiple Spanish public entities (Universities, Port Authority of Avilés, etc.) jointly with authorities from other countries such as Portugal, France and Ireland. The purpose of this project is to investigate the hybrid use of renewable energy in the irrigation, aquaculture, port and domestic sectors.
3. The 1.7000 kW ‘Torrelaguna’ FPV project, developed by the public owned entity Canal de Isabel II, and located in Madrid. 

Beyond the current lack of regulation, the two main problems of FPV in Spain are: (i) that the water in which the panels would be located is not easily available, as the reservoirs are owned by the government and, at present, a concession, which is very complex to obtain, is needed to build them; and (ii) there is a belief in the sector that the technology is more complex from a technical standpoint and probably not mature enough to make the investment profitable without any kind of public support (in Spain it is still associated with pilot projects).

We believe that there are many possibilities given that:

• Spain has 1,225 large reservoirs and dams, making it the country with the fifth largest number of this type of infrastructure in the world and the first in the European Union. Spain has Mediterranean climate, which means that summers are dry and hot, and it is necessary to collect water during the periods with highest rainfall, which is the reason why Spain has a high number of reservoirs and dams, mainly built in the mid-20th century; and
• As mentioned for agrivoltaic projects: (i) Spain is very well known for having some of the best solar conditions in Europe for operating photovoltaic projects; and (ii) the Spanish Government has demonstrated willingness to promote renewable energy, and has already started regulating FPV.

Yes.

In June 2024 the Spanish Government passed Order TED/765/2024 of 22 July, which established the regulatory bases for the granting of subsidies for investment in innovative renewable energy and storage projects, as well as for the implementation of renewable thermal systems (Orden TED/765/2024, de 22 de julio, por la que se establecen las bases reguladoras para la concesión de ayudas a la inversión en proyectos innovadores de energías renovables y almacenamiento, así como a la implantación de sistemas térmicos renovables).

FPV are among those included in the subsidised projects and may range from EUR 700/kWp, if the project has a capacity of more than 1,000 kWp, to EUR 1,100/kWp if the project has a capacity of between 10 kWp and 100 kWp.