Spain’s agri-food industry — from farms and cooperatives to food processing plants — is accelerating its move towards renewable energy, driven by the need to reduce costs, meet climate targets and respond to customers’ demands for more sustainable products.
Why now
Food production is energy-intensive. Refrigeration, heating, drying, irrigation pumps and processing lines all consume large amounts of electricity and fuel. The spike in energy prices in 2022 was a wake-up call for many companies, showing how exposed their margins were to the cost of gas and electricity. Since then, investment in generating their own clean energy has grown rapidly.
The main routes
Solar self-consumption. Rooftop and ground-mounted solar panels on warehouses, factories and farm buildings are the most common solution. Spain’s abundant sunshine makes solar particularly attractive, and many installations pay for themselves in a few years.
Biogas and biomethane. Agricultural and food waste — manure, crop residues, by-products from processing — can be turned into biogas through anaerobic digestion. This produces energy while reducing waste and emissions, and the leftover material can be used as fertiliser.
Biomass. Pruning waste, nut shells and other residues can be burned in efficient boilers to provide heat for processes such as drying.
Electrification. Replacing gas boilers and diesel equipment with electric alternatives, such as heat pumps, allows companies to benefit from renewable electricity.
Energy communities. Cooperatives and rural towns are increasingly sharing solar installations, spreading the costs and benefits among members.
The benefits
- Lower and more predictable energy costs.
- Reduced emissions, which matter more and more to retailers and consumers.
- Less dependence on volatile fossil fuel markets.
- New income from waste that was previously a cost.
The obstacles
Companies still face hurdles, including the upfront cost of installations, delays in obtaining permits and grid connections, and the limited capacity of rural electricity networks to absorb new generation.
In the Balearics
On the islands, where energy has traditionally depended on imported fuel and the link with the mainland grid, farms, wineries and food businesses are also installing solar panels. With limited land available, the focus is on rooftops and existing buildings, an approach that avoids competition between solar farms and farmland — a sensitive issue in rural Mallorca and Menorca.
