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What is the energy transition and why is it crucial?

Representation of the hour of the planet
Image: Freepik.

The energy transition is not just a trend or an environmental policy. It is a profound transformation that affects industries, economies, and the daily lives of millions of people. Essentially, it is about moving from an energy model based on fossil fuels to one that uses renewable, clean, and sustainable sources.

Spain, like many European countries, has firmly committed to this change. But although the goal is clear—to reduce CO₂ emissions and curb climate change—the path is full of technical, economic, and social challenges that must be understood in order not to underestimate its complexity.

The concept of energy transition refers to the gradual replacement of conventional energy sources (such as coal, natural gas, or oil) with technologies that do not emit greenhouse gases, such as solar, wind, hydroelectric, or geothermal energy.

This transition involves much more than just changing the source: it means rethinking the entire structure of the energy system, from how electricity is produced to how it is transported, stored, and consumed. It also implies a cultural change, where companies, governments, and citizens modify habits, investments, and priorities.

In Europe, this process is guided by the objectives of the European Green Deal and the REPowerEU plan, which aim to achieve climate neutrality by 2050. Spain has taken on the challenge with its National Integrated Energy and Climate Plan (PNIEC), which sets ambitious decarbonization targets for 2030.

Why has it become urgent?

The urgency of this transformation is explained by a combination of factors: climate change and international commitments to limit global warming to below 1.5°C, according to the Paris Agreement; geopolitical volatility and external energy dependence, as evidenced after the war in Ukraine, which caused gas prices to soar; the need to modernize obsolete infrastructures, many of which were designed for a centralized, fossil-based system; and industrial competitiveness, as more and more companies need clean and cheap energy to be sustainable and attract investment.

In this context, the energy transition is not just an environmental issue, but also one of security, economic sovereignty, and technological modernization.

What technologies are leading the way?

Spain has a significant natural advantage: abundant solar and wind resources. This has allowed more than 50% of national electricity generation to come from renewables in 2024. The key technologies in this change are:

Photovoltaic solar energy: already accounts for more than 16% of electricity production. It is cheap, quick to install, and adaptable to different scales, from domestic rooftops to large solar farms.

Wind energy: provides around 24%, with a very well-established installed capacity, both on land and in offshore projects under development.

Hydropower: although it depends on rainfall patterns, it is flexible and provides stability to the system.

Solar power plant

Solar power plant. Image: Freepik.

Energy storage: large-capacity batteries, still in their early stages, will be fundamental for managing the intermittency of sun and wind.

Green hydrogen: although still in the pilot phase, it is emerging as a key vector for decarbonizing sectors such as heavy industry and transport.

In addition, work is being done on digitalization, smart grids, and energy efficiency, all necessary for the new system to function in a coordinated and stable way.

Technical challenges: from balance to stability

One of the less visible—but most critical—aspects of the energy transition are the technical challenges. The electricity system must always be in perfect balance between supply and demand. When that supply depends on intermittent sources like sun or wind, the challenge multiplies.

The main challenges include: the variability of renewable generation, which can change drastically in minutes; the need for storage, to save energy when there is a surplus and release it when there is a shortage; the lack of inertia in the system, since renewables do not spin like classic turbines, making it harder to keep the electrical frequency stable; congestion in the grids, which were not designed to receive thousands of small producers distributed throughout the country; and integration with Europe, where Spain still has limited interconnection capacity (below the 10% recommended by the EU).

Solving these challenges requires multimillion-euro investments in grids, technology, and training, as well as effective coordination between operators, regulators, and companies.

The role of consumers in this energy revolution

The transition does not stop at large infrastructures. Consumers play an increasingly active role. It is no longer just about turning off lights or choosing a green tariff, but about becoming prosumers: people or companies that produce part of their own energy, consume it, store it, and feed it back into the grid.

The rise of self-consumption, especially in the residential and business sectors, is decentralizing the system. In addition, electric vehicles and the electrification of heating (through heat pumps) are changing the way we use energy.

Demand management—that is, adapting consumption to the availability of energy—will be a key element. With tools such as home automation, dynamic pricing, and energy aggregators, consumers will be able to optimize when and how they use electricity.

A global race with local impact

The energy transition is not exclusive to Spain. It is happening on a global scale, with each country adopting its own pace according to its resources, economy, and infrastructure. Germany, Denmark, and the Netherlands have made strong progress in renewables; the United States and China lead in solar installation; France is betting on nuclear; and Latin America is exploring the potential of hydropower and hydrogen.

But beyond global figures, the most direct impact is felt at the local level: communities installing shared solar panels, towns reviving old mini-hydroelectric plants, cities electrifying their public transport.

In this sense, the energy transition is also an opportunity for social innovation and territorial development, especially in rural or sparsely populated areas.

Between climate ambition and technical reality

The energy transition is, without a doubt, one of the greatest technological and social challenges of the 21st century. It has the potential to completely change our relationship with energy, the planet, and the economy.

But it also involves a complex process, not without tensions, where industrial interests, regulations, costs, and stability risks intersect. Making it viable requires long-term vision, adaptability, and above all, a realistic connection between climate ambition and technical feasibility.

The challenge is no longer whether it must be done. The challenge is how to do it well and on time.

Sources:

  • Ministry for the Ecological Transition and the Demographic Challenge (MITECO) – National Integrated Energy and Climate Plan 2021-2030 (PNIEC)
  • Red Eléctrica de España (REE) – Spanish Electricity System Report 2024
  • European Commission – REPowerEU: Plan to reduce dependence on Russian gas and accelerate the transition
  • El Periódico de la Energía – Energy transition: beyond renewables
  • La Vanguardia – This is what the Spanish energy system will be like in 2030

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