While the markets certainly experienced something of an unquestionable ‘technological furore’ in 2020, it’s looking like renewable energies will be the story of the stock markets in 2021. Particularly in Spain, where the government’s commitment to an ecological transition adds to the willingness of businesses and organisations to face up to SRI – socially responsible investment – once and for all. The perfect breeding ground for investments in the ‘green sector’ to take off and establish a framework conducive to strategic partners in the technology sector contributing to its development.

Currently, the Spanish stock market, over and above the private sector, is concentrating short-term investor appetites in green energies. Spain, where the most prominent IPOs will soon be led by ‘pure’ renewable energy companies, is joining a trend that is already solid throughout Europe: clean energy IPOs have raised $336 million in the last twelve months alone. A clear demonstration of the EU’s desire to meet its own deadlines and entirely eliminate polluting emissions by the year 2050. 

Benefits of renewable energy development in Spain

It’s no great surprise that the ‘starting gun’ has already been fired on the national markets. The biggest companies within the energy market are fully aware that the time has come to make serious progress. And it makes sense. The S&P Global Clean Energy Index reached 138% in 2020, but market corrections are already underway to a more realistic figure of 16%. Experts believe movement should focus more on efficiency and long-term development than on mammoth vanity projects that simply fail to implement all the megawatts they promise.

Both Spain’s terrain and climate conditions are conducive to solar and wind energy, for example, which could put Spanish energy companies at the front of the queue when it comes to transforming renewable energy throughout Europe, evidence that seems to underpin the spirit of investment.

Diego Aguinaga, Corporate and Investment Banking Director at BNP Paribas confirms that “Spain is a leading renewables market. The country’s profitability rates are higher for investors in renewables than in other European countries”.

Making the most of renewable energy sources with the help of technology

One of the main obstacles to renewable energy development is the high investment involved. Renewable power plants require huge financial ‘muscle’ even to start their initial deployment and development phases. That’s why their overall efficiency is of paramount importance, both in terms of extraction and in energy use and distribution.

In this way, by introducing technological developments to power plants, such as fibre optic and 5G, it will be possible to maximise both their performance and use of the financial resources allocated to them. Through synergies with technology partners, big companies in the renewable energy sector can, among other benefits:

• Manage plants using artificial intelligence.
• Perform efficient remote management.
• Distribute energy effectively using real-time data.
• Respond appropriately to peaks in consumption and demand.
• Streamline processes and logistical routines.
• Improve communications both vertically and horizontally.
• Minimise maintenance costs and shorten repair times.
• Take advantage of the benefits of cloud computing.

Everything seems to point to this being the year of renewable energies. And Spain could take a prominent, leading position with respect to its partners in the EU, not only in terms of the technological transition and the energy paradigm shift, but also in terms of their all-important economic recovery.