Spain's renewable-energy push faces scrutiny as Figueruelas battery factory proceeds

Spain's push to power its economy with renewables is under renewed scrutiny as construction of a major EV battery plant in Figueruelas, Aragón, moves forward with a €4-billion investment by Chinese maker CATL and the Netherlands-based Stellantis. The project underscores both the optimism surrounding a wind-and-solar-led energy model and the fragility of the grid highlighted by a nationwide blackout in late April.

Figueruelas sits on the windswept plains of Aragón, where a single wind turbine towers over the town and the surrounding farms, a reminder of the region's role in Spain's green transition. The project is being billed as a cornerstone of the local economy: CATL and Stellantis describe the facility as a symbol of one of the biggest Chinese investments in Europe. "We're in Aragón, where there's wind all year round, there are lots of hours of sunshine, and we are surrounded by wind turbines and solar panels," said local mayor Luis Bertol Moreno. "Those [energy sources] will be crucial in generating electricity for the new factory, and I understand that was the key reason for building it here in Figueruelas." The factory is expected to attract around 2,000 Chinese workers during construction and could support up to 35,000 indirect jobs once operational, reshaping a town with a population around 1,000.

Spain's energy model has long leaned on renewables. In 2017, renewables supplied roughly one third of the country's electricity; last year they accounted for 57%. The government has set a target for renewables to contribute 81% of electricity output by 2030. The project in Figueruelas aligns with that trajectory, with supporters arguing that the energy sources powering the plant—wind and solar—will be essential to its operation. Yao Jing, China’s ambassador in Spain, called the investment "one of the biggest Chinese investments Europe has ever seen."

But the country's commitment to renewables has faced renewed scrutiny after a wide-ranging outage in late April that left homes, businesses, and public services offline across Spain and neighboring Portugal for several hours. The timing and cause of the blackout have become a political flashpoint: conservative opponents argued that over-reliance on intermittent renewables could jeopardize grid reliability, while supporters pointed to a complex set of technical factors. A week before the blackout, solar generation in mainland Spain reached a record 61.5% of the electricity mix, a figure cited by critics as evidence that renewables were dominating, though officials insisted it was not the sole cause of the outage. Concha Sánchez, head of operations for Red Eléctrica, said the system has operated with high renewable penetration before without compromising security and attributed the outage to a combination of factors, including an "unknown event" in the grid moments before and voltage oscillations. She emphasized that cyber-attacks had been ruled out and that authorities are awaiting a full report to determine the exact cause.

The blackout also sharpened a debate over the role of different energy sources. Spain's nuclear industry, which currently accounts for about 20% of national electricity, has argued for a more gradual transition that preserves a stable mix of energy sources. Five nuclear plants are slated to close between 2027 and 2035 under current plans, though Almaraz's operators have requested a three-year extension to life until 2030, a request under consideration. Ignacio Araluce, president of Foro Nuclear, argues that Spain is the only country scheduling the closure of reactors that are still in operation and that a combination of renewables and nuclear provides the best path to reliability and decarbonization. "It's prudent to have a mix of renewables and nuclear energy," he says. "How can you produce energy in those hours when the renewables are not producing?" He added that nuclear energy, while not emitting CO2, offers a constant supply that complements renewables. The stance from the political right has been to emphasize energy sovereignty and reliability, and Vox has criticized what it sees as a lack of explanation from the government on the blackout, framing nuclear power as a stabilizing factor.

The government acknowledges room for improvement in Spain's electricity model, including storage. Concha Sánchez notes the Iberian peninsula's relative isolation from the broader European grid makes storage critical to balancing supply and demand, especially as renewables expand. She says storage installations must be fostered to uphold reliability as the country pursues its green transition. Spain's political landscape adds another layer of uncertainty. The Socialist-led coalition has faced corruption investigations and appears to have a weakened parliamentary majority, raising the possibility of a snap election that could reshape energy policy. A shift to a government less inclined to accelerate renewables could recalibrate Spain's approach to the energy mix, the grid, and the pace of nuclear policy.

Amid the volatility, investment in Figueruelas continues to be framed as a vote of confidence in Spain's green economy. The plant’s construction—and the jobs it promises—are seen by local residents as a catalyst for broader economic activity. Manuel Martín, a local resident, says the project could revitalize the area and the local economy. "These kinds of investments revitalise the area, they revitalise the construction sector, hostelry," he says. "And the energy is free – it just depends on the sun and the wind." The Figueruelas project thus stands at the crossroads of policy, market forces, and regional development, illustrating how Spain seeks to advance its climate and energy goals while contending with questions about reliability, grids, and the political path ahead.