A Strategic Analysis of Photovoltaic Energy Projects: The Case Study of Spain

Abstract

The Spanish photovoltaic sector could be a serious opportunity for the recovery and economic growth of the country, by serving as a support platform for the National Integrated Energy and Climate Plan (NIECP) 2021–2030, whose objective is to determine the lines of action required for the appropriate and efficient use of clean energy in order to benefit the economy, employment, health, and the environment. Bearing in mind the notable increase in the economic competitiveness of photovoltaic energy in Spain when compared to traditional and other renewable energy sources, it is necessary to carry out a strategic analysis of the macro-environment, using a PESTEL (Political, Economical, Social, Technological, Environmental and Legal) analysis so as to identify the most relevant external aspects that are vital for the performance of photovoltaic industries/markets and to facilitate decision making when developing short-, medium-, and long-term strategies, and the micro-environment, using Porter’s five forces (threat of new entrants, threat from substitution products and/or services, the bargain power of suppliers, the bargaining power of buyers and competitive rivalry) framework, to determine and examine the main factors that define the structure and level of competition that exists within the Spanish industry/market. The results obtained have been combined in a SWOT (Strengths, Weaknesses, Opportunities, and Threats) chart, which facilitates an understanding of the current strengths, weaknesses, opportunities, and threats as regards the photovoltaic sector in Spain.

1. Introduction

Photovoltaic (PV) solar energy has, for several decades, been highlighted as a promising actor in the energy mix [1]. In recent years, this technology has gone through very different stages: growth, stagnation, regulatory changes, or bureaucratic barriers, among others [2]. However, it is possible to affirm that this energy is once again in the ascendancy and has been transformed into a strength within the sector owing to the particular competitive advantages it has in relation to other types of energy [3]: (i) unlimited resources; (ii) very environmentally friendly energy; (iii) very low operating costs; (iv) simple and low-cost maintenance; (v) PV panels that have a service life of up to 20 years; (vi) most modules are characterized by being clean and quiet, signifying that they can be installed almost anywhere without causing any inconvenience; (vii) it is an excellent energy harvesting system for areas that electricity does not reach; and (viii) it is also increasingly low in cost, especially in sunnier regions in which it has already become the least expensive form of electricity generation. However, despite this excellent situation, photovoltaic projects need to overcome existing barriers of varying types (technical, economic, policy, and regulatory and socio-political), as illustrated in Figure 1, which could make the development of these renewable technologies difficult in the coming decades.

Moreover, the health crisis resulting from the global spread of the SARS-COV-2 coronavirus, and the measures implemented at the national level by most governments in order to contain the pandemic, caused disturbances in manufacturing, in the supply chain and/or logistics, and in the installation work being carried out by companies in any sector, which obviously includes the solar sector [4]. This has caused much global industry, and, therefore, its economies, to be paralyzed by the pandemic [5]. In this respect, the photovoltaic sector could become one of the economic drivers to help recovery after the COVID-19 crisis. Once the current containment measures had been lifted, it was necessary to carry out recovery plans that would promote a rapid return to normality in the economy and in which the ecological transition process would be the main lever for economic recovery in order to mitigate the effect of the destruction of employment and the productive fabric caused by COVID-19.

This paper focuses on studying the particular case of Spain, whose empowerment of the photovoltaic sector may be a viable way out of the economic crisis resulting from COVID-19, for the following reasons [6,7]: (i) according to the last United Nations Climate Change Conference of November 2022 [8], 41.3% of all the energy generated in Spain during 2022 was renewable; (ii) photovoltaic installations are becoming more and more affordable for the citizens, and it is considered a viable option that is amortized in a short time, thus allowing them to make constant savings on their energy bills; (iii) Spain has excellent weather conditions, with 3000 h of sunshine per year and land on which to install the equipment required, benefits that provide competitiveness when compared to other countries, and to this factor we must add the possibility of families or companies at a private level opting for this option as a source of self-consumption; (iv) the Spanish photovoltaic sector has a solid, quality, and competitive industrial fabric that includes leading international companies in the manufacture of photovoltaic components and in the segment of solar trackers and inverters [9]; (v) the Ukrainian War has put in check the dependence of countries on two countries involved in the conflict as gas or oil suppliers, which has been a turning point and will contribute enormously to increasing investment in sustainable energy in the coming years, thus reducing the usual external dependence; and (vi) consumers are increasingly more interested in the possibilities offered by photovoltaic energy for self-consumption as an alternative to the constant increases in the price of electricity. All of these are the agents involved in the consolidation of solar energy as the fastest growing renewable source, breaking records in Europe and making Spain the second largest market in the European Union (EU), behind only Germany. Proof of this is that 2021 was the best year in the history of the photovoltaic sector in Spain, surpassing the previous installed power record set in 2019. In ground-based plants, the installed capacity stood at 3.5 GW, a growth of 21% when compared to the 2.9 GW incorporated in 2020. In addition, as in 2020, it should be noted that all this new capacity was introduced without any type of aid or regulatory remuneration scheme. Self-consumption, meanwhile, had a record year, with an increase of more than 100%, rising to 1203 MW installed, and assuming around a third of the PV capacity. These figures establish the bases for the fulfillment of the NIECP objectives for 2030 [10], since in the last three years, 10 GW of ground capacity and 2.7 GW of self-consumption capacity have been incorporated. In this respect, when understanding the impact of the environment on a company, developing a new product, designing a new business line, or implementing a new project, it is necessary to know all those variables that can influence decision making [11]. It is important to bear in mind that the macro- and micro-environment surrounding companies/projects is constantly changing, and it is here that the development of a strategic analysis can be utilized to solve this problem. In order to bridge these gaps in data, and supported by the most up-to-date scientific literature, guidelines, and reports, this work therefore provides a strategic analysis based on the use of various techniques with the aim of expanding the knowledge regarding the situation of the photovoltaic energy projects in Spain that appeared during the economic crisis owing to COVID-19. This will be done in order to maintain a learning behavior that will facilitate adaptation to new scenarios that may arise in the future as a consequence of this recent pandemic and thus maximize the chances of success of these characteristics in business/projects.

The remainder of the paper is structured as follows. Section 2 focuses on a study of the Spanish macro-environment by means of the development of a PESTEL analysis, which will facilitate the attainment of a comprehensive list of the main factors that will influence the PV industry/market. Section 3 studies the micro-environment of the photovoltaic sector by means of Porter’s five forces method with the aim of analyzing the competence level of the Spanish photovoltaic industry/market when developing future business strategies. The results obtained from the analysis carried out in the previous sections have been grouped in a SWOT (strengths, weaknesses, opportunities, and threats) chart in Section 4 in order to show the competitive advantages and disadvantages of the implementation of Spanish photovoltaic generation projects. Finally, Section 5 shows the conclusions of this work.

2. Macro-Environment Strategic (PESTEL) Analysis of Photovoltaics in Spain

An analysis of the macro-environment of photovoltaics in Spain will be carried out by developing a PESTEL analysis, which will provide a description of the context or environment in which a specific industry/market works. The study of the external environment is fundamental because it makes both decision making and the development of short-, medium-, and long-term strategies easier [12,13]. The main items contemplated within the PESTEL framework (see Figure 2) are political, economic, social, technological, environmental, and legal analyses of this industry/market, in addition to which it determines the main stakeholders implied in these matters. Political issues make it possible to determine and evaluate how government intervention can influence both the operation and performance of the market/industry. This occurs by means of the laws and policies applied by the government entity. Economic factors take into account all macro-economic variables. These variables are considered both nationally and internationally, since they could favor or hinder the organization’s performance. Social factors cover the elements that involve the population’s shared belief and attitudes. Technological factors cover those technical innovations that could affect the industry/market operations in a favorable/unfavorable manner. This includes automation, research, development, and innovation (R&D&i), and the technological awareness that an industry/market possesses. Environmental factors refer to those green issues directly/indirectly related to the environment. Any changes made to government regulations or social trends with the aim of protecting the environment may affect the industry/market. Moreover, legal factors include all the laws with which the industry/market is forced to comply. Legal regulations can harm or benefit the performance of the industry/market and consequently affect the production and marketing process of the products offered by the industry/market. The main characteristic of this analytical methodology is that it provides information about factors that the company cannot control. However, it also provides all the information required to implement the strategic plan that best meets the needs of the industry/market at a given time and in a particular space. In this respect, one of the benefits of this technique is that all the factors can be reviewed and updated over time. All of the above are dealt with in the following subsections.

2.1. Political Analysis

The most significant non-technical barriers in this renewable energy sector are possibly political frameworks. The main issues involved are explained below.

2.1.1. Political Factors

A country’s degree of political stability is considered a requirement that will guarantee economic growth. A government’s stability, therefore, affects different variables that may, in turn, be interrelated and have a multiplier effect on the economy and its participants [14]. In this respect, a country with a high degree of political stability contributes to reducing the risks associated with future uncertainties and to encouraging investment and job creation.

In the case of Spain, after the onset of the 2008 financial crisis, rising unemployment and numerous cases of political corruption have undermined the electorate’s confidence, leading to the emergence of new political formations whose objective has been to channel this discontent [15]. This increased the difficulty of forming a government in the elections of December 2015 (which had to be repeated in June 2016) and of April 2019 (which had to be repeated in November 2019), owing to the inability to inaugurate a president [16]. Furthermore, the multiple differences between political parties have made the current political landscape highly polarized. It could be said that these differences have intensified as a consequence of the failure of the Catalan independence process that occurred in 2017 [17] and the recent economic/health crisis resulting from COVID-19.

2.1.2. Fiscal Policy

This is one of the main tools that allow countries to control certain aspects of the economy, such as the degree of taxation and public spending, in order to guarantee long-term macro-economic stability [14]. Before the pandemic, Spain was in a contractionary economic cycle with an essentially restrictive fiscal policy. The reason for this was the serious financial crisis that began in 2008 [18]. The fall of the important financial centers and the explosion of the real estate bubble seriously affected the country’s largest productive sectors, causing serious imbalances in the state’s ability to meet its expenses. This situation reduced the state’s collection capacity and forced it to borrow money from the markets to finance basic social services and thus apply expansionary policies that mitigated the economic impact of the crisis [19]. Fiscal deficit and public debt consequently soared, leading to an increase in the risk premium, which reached its maximum value in 2012, exceeding 600 basis points. The restrictive policies initiated by the government, in accordance with the requirements for the deficit in the Eurozone, have improved the country’s positioning over the last few years [20]. Moreover, fiscal policy is critical as regards saving lives and protecting people in pandemic times [14]. In this respect, governments provided emergency assistance in order to (i) save lives; (ii) protect the population from the loss of jobs and income; (iii) protect companies from bankruptcy; and (iv) facilitate the recovery of the economy once the worst of the pandemic had passed. The EU did not approve joint tax measures, since direct taxation is the purview of each member state, although it was necessary to adopt two types of flexibility measures with which to accommodate national measures by [21]: (i) making the Stability and Growth Pact (SGP) more flexible, and (ii) making state aid more flexible. With regard to the SGP, on 23 March 2020, the EU finance ministers agreed [22] that conditions had been met to activate the escape clause from the fiscal framework, which was a severe economic recession in the euro area and in the EU as a whole. The activation of the escape clause allowed the member states to provide the economy with public support without the restrictions of the SGP, thus enabling temporary deviations. Additionally, on 19 March 2020, the European Commission established the conditions required to ease state aid during the COVID-19 crisis [23]. This regulated a framework that allowed member states to deal with the difficulties confronted by companies without these measures giving rise to incompatible state aid. Assuming that the existing rules might not have been sufficiently broad for that specific moment, a series of additional aids such as tax benefits were allowed for companies confronting liquidity difficulties as a result of COVID-19. Within the EU, countries such as Germany, France, Italy, and the United Kingdom opted for grants and direct transfers to prop up businesses and ease the tax burden on small and medium-sized enterprises (SMEs) and certain sectors. However, Spain limited aid to deferrals in the payment of supplies, rents, and mortgages, along with moratoriums for taxes and tax debts [24].

2.2. Economic Analysis

The purpose of an economic analysis is to study those factors that are determinant in the performance of the economy and directly impact on an industry/market, causing resonating long-term effects. The COVID-19 pandemic has undoubtedly led to a global health crisis without precedent in the contemporary history of humanity. One of the measures most frequently applied in order to combat its effects was the confinement of citizens and the forced closure of a large percentage of companies and institutions, which meant a considerable halt in economic and social activity. In addition to the enormous cost in terms of human lives, the COVID-19 pandemic, therefore, also gave rise to an unexpected international economic crisis in which the paralysis of part of the economic activity and the confinement of the population had a very intense contractionary effect on macro-economic variables (gross domestic product (GDP), employment, public sector, etc.), as will be analyzed in detail below.

2.2.1. Gross Domestic Product (GDP)

This is a macro-magnitude that represents the monetary flow of goods and services produced by the economic agents of a country in a given period of time [14]. In this respect, GDP is used as a measure of a country’s wealth-generating capacity. Spain has entered a recession three times in the 21st century. The first time was marked by the financial crisis of 2008, which lasted through a period of global economic recession. The annual variation experienced its largest decrease in 2009, just before a slight recovery in 2010, which was followed by a second fall in 2012 as a consequence of the sovereign debt crisis. From that time on, Spain’s GDP maintained a growth rate that was slightly above the average of all European Union countries until 2015. However, the effects of the crisis were greater during the recession period. The third recession caused by COVID-19 is of a much greater intensity.

From the point of view of GDP on the supply side, the Spanish economy is, quantitatively speaking and as is the case of all developed countries, a service economy, which represents around 75% of its Gross Value Added (GVA) at basic prices. As can be seen in Figure 3a, between 1995 and 2007, construction and services increased their weight as regards total GVA, to the detriment of industry and the agricultural sector. However, with the 2008 crisis, the participation of construction in GVA was drastically reduced; industry continued to undergo secular weight loss, while services maintained their trend of being an increasing weight in the total GVA (see Figure 3b). As of 2014, there was a slight increase in the industrial sector and a certain reduction in the service sector, and a general trend towards the recovery of the Spanish economy began. This was, however, interrupted in 2020 by the COVID-19 crisis, which caused a decrease in the participation of construction and services. The COVID-19 crisis fundamentally affected those branches linked to leisure and tourism, that is, artistic, recreational activities and other services, and those linked to trade, transport and hospitality. The large falls that occurred in the second quarter, which coincided with the period of confinement that occurred in Spain, are especially significant. These drops in productive activity were directly reflected in the level of employment: the COVID-19 pandemic destroyed 1,374,700 full-time jobs (a reduction of 7.5%), affecting all sectors. Services lost over a million jobs (with a drop of 7.8% in a single year).

When analyzing the GDP on the demand side (see Figure 4), the enormous drop that occurred in the year 2020 owning the COVID-19 pandemic is clear [25]. Firstly,

Table 1. Annual and quarterly variation rates (in percentage) of the of the real GDP on the demand side in the year 2020. Source: the authors.

		Annual Variation Rate 2020	Quarterly Variation Rates 2020
			Q1	Q2	Q3	Q4
GROSS DOMESTIC PRODUCT (GDP)		−10.8	−5.3	−17.8	17.1	0.0
Final Consumption Expenditure (FCE)		−8.2	−4.6	−14.3	14.8	0.4
	Households	−12.4	−6.6	−20.1	21.4	0.0
	Non-Profit Institutions Serving Households	−0.2	−1.2	0.0	0.0	0.6
	Public Administrations	3.8	1.1	0.6	1.3	1.3
Gross Capital Formation (GCF)		−12.4	−5.1	−20.5	20.2	0.6
	Gross Fixed Capital Formation (GFCF)	−11.7	−4.9	−20.5	21.5	1.0
	Construction	−14.0	−4.2	−20.7	16.7	−0.2
	Machinery, equipment and weapons	−13.0	−8.5	−28.3	44.5	1.0
Exports of Goods and Services		−20.2	−7.5	−34.0	31.1	4.6
	Exports of Goods	−8.9	−4.1	−23.2	29.3	4.3
	Exports of Services	−43.7	−14.6	−58.9	38.7	5.8
Imports of Goods and Services		−15.8	−5.8	−28.5	26.8	6.2
	Imports of Goods	−12.1	−4.1	−26.1	28.7	4.9
	Imports of Services	−31.0	−12.5	−40.1	16.5	14.0

shows the annual and quarterly variation rates of real GDP (in percentages) on the demand side during the year 2020. As can be seen, the principal fall occurred in the foreign sector, especially as regards the imports and exports of services. The main reason for this fall was the almost complete cessation of economic activity during the months of confinement, which caused a considerable decrease in the importations of goods and services (for example, the halt in mobility reduced energy imported for the transportation of goods and people). In addition, as a consequence of the restrictions on mobility established by the government in order to control the pandemic, tourism did not act as a factor of external balance. Moreover, the international collapse of the demand for durable goods also affected the exportation of important items as regards the Spanish balance of payments, such as automobile exports. Final consumption also underwent a sharp drop in 2020 (−8.2%), especially in the case of household spending on consumption (−12.4%). This drop can first be attributed to the decline in the disposable income of many people who lost their jobs or saw their work hours reduced. However, the decrease in their disposable income was cushioned thanks to legal figures such as the Record of Temporary Employment Regulation (RTER) [26].

The drop in spending can also be explained by the restrictions as regards the closure of non-essential activities, mobility, and interpersonal distance, which made it extremely difficult to consume most goods and services. However, as a consequence of the different rhythm of life imposed by the conditions that resulted from controlling the pandemic, there was an increase in the final consumption of food, health products, and technological goods and services related to working from home, online training, and family entertainment. Given the stoppage of activity and the uncertainty regarding the economic horizon, investment by companies was drastically reduced. This is reflected in spending on gross capital formation (GCF), construction, and machinery and capital goods. Finally, it should also be noted that the GDP grew by 5.1% in 2021, somewhat less than expected, and owing principally to the important role played by higher fuel prices and the increase in the price of electricity, which had an impact reduction of seven-tenths on the GDP growth of 2022 and 1.1 points in 2021 [27]. All of the above signifies that the recovery of the GDP levels that existed prior to the pandemic will not occur until 2023, yet another sign that the Spanish economy will take longer to recover from the crisis than other countries [28].

2.2.2. Public Sector

This sub-section studies the capacity (surplus) or need (deficit) to finance the Spanish public sector, that is, the difference between non-financial income and non-financial expenditure, in which the following will be observed. (i) The 2008 crisis caused very high public deficits that had to be reduced in order to follow the guidelines imposed by the European Commission, the European Central Bank, and the International Monetary Fund. The deficit reached disturbing figures of 11.3% of GDP in 2009 and 10.7% in 2012. A great effort was made to correct the deficit from 2012 onwards. (ii) In the period between 2014 and 2019, progress continued towards the adjustment of public accounts, reaching a deficit of 2.5% of GDP in 2018, although there was an increase to 2.9% of GDP in 2019, but the fundamental factor in this period was the growth of the economy. (iii) The COVID-19 pandemic put a radical brake on the adjustment of public accounts. The public deficit went from 2.9% in 2019 to 11.0% in 2020, the highest ratio in the entire European Union (EU) during 2020. On the one hand, Public Administrations increased public spending to 10.1%, which implies an increase of 53,070 million when compared to 2019, in order to expand the health spending necessary to fight the COVID-19 pandemic and to apply income protection measures, such as RTERs (which entail spending on benefits for unemployment), and other aids such as self-employment benefits. On the other hand, Public Administrations suffered a significant drop in revenue of 5% as regards both tax (the drops in consumption, employment, and business profits reduce revenues from Value-Added Tax (VAT), indirect taxes, and Corporation Tax) and contributions to Social Security (owing to the drop in employment and tax exemptions).

2.2.3. Potential Impacts of the Spanish PV Energy Sector

A summary of the main potential impacts of the Spanish PV sector from different points of view is provided below [6]:

• Economic impact of the PV industry. The PV industry has had multiple positive impacts on the national economy, directly, indirectly, and induced. From 2019 to 2021, the contribution to GDP was EUR 10,073 M. The direct footprint of the sector (which affects only the national GDP when quantifying the direct impact generated by the PV sector in the Spanish economy) increased to 27% from 2019 to 2021. The indirect and induced footprints are, meanwhile, broken down into the national and imported footprints, since they quantify the drag effects associated with the purchase of domestic and imported materials and the consumption of goods and services by workers in the sector. The indirect footprint for 2021 can, therefore, be broken down into EUR 3170 M at the national level and EUR 2520 M to imported GDP, while the induced footprint can be broken down into EUR 1987 M at the national level and EUR 636 M of impact on the imported GDP. In terms of the indirect footprint, the increase was, therefore, 26%, and the induced footprint was 7% when compared to 2019.
• Impact of the PV industry on job creation. The photovoltaic sector has a wide value chain that generates direct, indirect, and induced employment. Since the elimination of the sun tax in 2018 [29], the sector has continued to grow steadily and has consolidated. In 2017, a total of 24,526 jobs were created, of which 6785 were direct, 11,011 indirect, and 6729 induced. Within the value chain, the areas that created the most direct employment during 2018 were those of production and distribution, followed by engineering and installers. In total, 29,306 jobs were created: 7549 direct jobs, 13,393 indirect jobs, and 8365 induced jobs. Following the growth trend in job creation, in 2019, a total of 58,699 jobs were created: 17,194 direct jobs, 21,292 indirect jobs, and 20,213 induced jobs. These data show a very positive trend in the Spanish photovoltaic industry. It is worth noting the increase in the weight of manufacturers in the value chain, reaching 5600 direct jobs. The increase in job creation in the sector was consolidated and maintained in a balanced manner during 2020 with the creation of 17,568 direct jobs, 22,800 indirect jobs, and 18,524 induced jobs. In total, in 2020, 58,892 jobs were created. In 2021, the PV sector generated a total of 90,742 jobs, of which 22,694 were direct, 39,479 indirect, and 28,569 induced. The data collected demonstrate the positive impact of the photovoltaic industrial sector on employment. As has frequently been observed, there is a clear upward trend. In just four years, total job creation (direct, indirect, and induced) has been 261,067. The greatest growth has been undergone by indirect employment with 107,975 jobs, from 2017 to 2021, followed by induced employment with 82,400 jobs, and finally, direct employment with 50,692 jobs.
• Impact on the PV solar power installed in Spain (plants on land and self-consumption). With regard to plants on land, PV is a strategic source by which to increase Spain’s energy independence, lower electricity costs, and democratize energy. From 2006 to 2021, the installed capacity of plants on land increased by 96.41%. The evolution began to rise in a consolidated and sustained manner from 2018, increasing to 3913 MW (98%) in just one year. In 2021, the installed power reached 3487 MW. Furthermore, self-consumption installations have also undergone a positive evolution, reaching annual growth of 102% in 2021. In 2021, self-consumption installations reached 1203 MW, and the domestic sector represented 32% of the new installations. An even better year was expected in 2022, bringing closer the fulfillment of the self-consumption potential included in the National Self-Consumption Strategy.
• Impact on the trade balance of the PV sector. The Spanish photovoltaic industry was in the top 10 as regards capacity installation worldwide, and was specifically in seventh place. The importance of the sector is such that the impact on GDP increased by 19.57% from 2019 to 2021. Growth stagnated in 2020 as a result of the health crisis, but exports resumed in 2021 thanks to the economic recovery. The indirect impact of exports on GDP was also significant, since there was a growth of 18% from 2019 to 2021. The induced impact in 2019 was estimated at EUR 868 M, but decreased by 30% in 2020 owing to the pandemic. In 2021, there was a rebound effect which led it to increase by 18%, almost reaching the pre-pandemic figure.

2.2.4. Proposals to Strengthen the Contribution of Photovoltaic Energy Projects to the Spanish Economic Recovery

Institutions and administrations around the world point to the green door of renewable energies as the way out of this economic crisis that came about as a result the zoonotic pandemic that almost no one in Spain believed could exist in February 2020. It would appear that everyone is in agreement as to the need to mobilize investments in this direction and to develop clean energy production facilities, which it is also hoped will be a solution to climate change, the other great challenge confronted by humanity [30]. With regard to the new energy model, a powerful industry has been developing in Spain that is capable of not only providing the electricity required to continue producing and consuming cleanly from the sun but also stimulating the economy, creating jobs, bringing wealth to the rural world, and boosting countries’ industrial development. The Renewable Energy Country Attractiveness Index (RECAI) report [31], which analyzes the impact of COVID-19 and the countries’ recovery capacity in terms of both health and the economy, highlights that the climate and energy policy is one of the government’s priorities, establishing plans to increase solar energy. These measures have led most investors to be optimistic about medium-term projects in the sector. Taking into account the positive impact that the photovoltaic sector has on the growing Spanish economy and on employment (see Section 2.2.3), the following series of proposals may be very interesting as regards promoting the Spanish economic recovery [32]:

• Accelerate the development of plants on land:
  • Hold renewable energy auctions. Urgently call auctions under a pay-as-bid model that establishes a price for the energy generated.
  • Reform the access and connection framework. Introduce a new procedure by which to obtain permits, providing transparency and avoiding speculative behavior.
  • Reduce processing times. Increase the digitization of processes, the simultaneity between different procedures and judgments, and personnel resources.
  • Hybridization and over-installation. Regulate these types of photovoltaic installations and govern them by employing a simplified handling process.
• Encourage the deployment of self-consumption:
  • Temporary tax incentives. Possibility of accelerated amortization and temporary exemptions from taxes applicable to self-consumption.
  • Reduce the fixed term of the invoice. Reform the electrical system charges in order to increase the weight of the variable component in the electric invoice.
  • Simplify handling. Digitization, approval, and simplification of administrative processes by introducing the procedure via prior communication.
  • Innovation in self-consumption. Use of structural funds for the promotion of innovation and the deployment of self-consumption in non-mainland territories.
  • Review the Technical Building Code. Introduction of greater ambition as regards the obligation to install self-consumption in buildings.
  • Reform the Horizontal Property Law. Facilitate the agreement for blocks of flats to increase the deployment of collective self-consumption in the residential sector.
  • Campaign to promote self-consumption. Promotion that transfers a didactic message from the public administrations regarding the legality, profitability, and positive aspects of self-consumption.

2.3. Social Analysis

The objective of this analysis is to study those factors that involve the population’s shared beliefs and attitudes. In the case of photovoltaic energy projects, since it is expected that they could trigger territorial dynamics of wealth creation and employment in addition to a diversification of the economy, several social aspects must be taken into account in order to discover the risks and obtain a positive impact on the future development of these technologies. These will be explained in the following subsections.

2.3.1. Role of the Different Agents

Any new photovoltaic energy project must consider all the activities and existent practices of the different agents that act in the area in which it is planned to install a PV energy farm with the objective of evaluating all possible interactions. These studies (risks analyses, socio-economic impacts, etc.) are usually financed by the project promoters and are performed with the collaboration of technical specialists, tourist associations, local communities, and/or local recreational and commercial entities, among others [33].

2.3.2. Sensitization

The term renewable energy is currently part of the political ideology of any representative organization of a developed country. All kinds of measures are, therefore, applied for its implementation. However, many factors must be taken into account in order to guarantee the viability and success of a technological project of these characteristics. One of them is the perception and social acceptance of it [34]. Although it is true that the concept of renewable energy is very widespread among society, to what extent is the general public in favor of it? In 2015, the 21st Conference of the Parties of the United Nations Framework Convention took place in Paris in order to deal with the problem of Climate Change [30]. Around 195 countries met to reach the first global agreement on the effects of human hands on the environment. One of the main references of this convention was the European Union, which added more objectives for the future (2030), such as the reduction in CO${}_2$ emissions by 40% from 1990, the increase in energy efficiency by 30%, or the increase in the participation of renewable energies in the market of over 27%. The long-term goal is to convert the European Union into a sustainable economic model based on an energy system that respects the environment, while being simultaneously competitive.

The environmental awareness process carried out in recent years has led a large percentage of European citizens being committed to deal with climate change. In fact, of all the results provided by the Eurobarometer in recent years [35], it is worth mentioning that the majority of those surveyed state that the responsibility for fighting climate change should fall on European and national institutions, along with the various companies and industries that make an intensive use of the planet’s resources, relegating the actions of environmental associations to the background. Furthermore, a large percentage of European citizens believe that reducing dependence on fossil fuels and promoting renewable energy generation would help boost economic growth in the region [36]. The general public, therefore, firmly believes in the need for the institutions of the member countries to support the transition towards a sustainable energy model. However, the fight against global warming must be part of all sections of society, as it is undoubtedly one of the great problems that will have to be confronted in the future.

If attention is now focused on the particular places in which there are plans to develop a PV farm, the most important social impacts of these plants are public acceptance, job creation, and social benefits (i.e., the progress of the region, income, health benefits of improved air quality, etc.) [37], together with additional benefits such as the increase in regional or national energy independence, an increase in work opportunities, diversifying and securing the energy supply, the deregulation of energy markets, and the promotion of rural electrification in developing countries, among others [38]. In addition, it is very important to stress that public acceptance is essential for the agents involved if an agreement on these projects is to be reached [39]. This public acceptance is usually related to landscape [40] and has both cultural and environmental aspects owing to the fact that a varied landscape can support greater biodiversity along with aesthetic and cultural value. Depending on the case, the landscape can, therefore, be separated into an ecological landscape and a visual landscape [41] or be integrated as a whole as a socio-ecological impact [42]. The visual impacts depend on the particular type of environment and landscape in which there are plans to install the PV energy farm. The social impact varies depending on the location (areas close to natural beauty and cultural heritage or touristic areas in which visitors prefer to enjoy nature without any industrial disturbance having a strong negative impact), and the use of visual landscape planning facilitates the protection and conservation of cultural heritage and aesthetics [38]. It is essential for PV technology developers to consider the importance of public acceptance in their designs; otherwise, the PV energy project may lead to public resistance and negative attitudes, which could cause long delays in development or even stop it if the relevant bodies are not correctly informed [43].

2.3.3. Education

Several technological support skills and types of supply chain development, along with interdisciplinary approaches, are needed in order to enable the expertise required to tackle the different PV energy challenges and the subsequent commercialization of PV technology. With regard to the creation of human capital in PV energy, many dependent professions are affected by both the industrial and service sectors when they get involved in this type of energy project [44]: (i) photovoltaic solar installers; (ii) solar roofing jobs; (iii) maintenance and repair jobs; (iv) solar power scientists; (v) solar energy software developers/solar energy systems designers; (vi) solar engineering technicians; (vii) solar design engineers; (viii) general contractor jobs; and (ix) solar subcontractors, among others. Furthermore, with regard to training, it is necessary to mobilize all levels of the educational and technical training offered by dedicated institutions or as part of the university system in order to deploy the technicians and engineers that the photovoltaic sector needs. It would appear sensible to rely on existing qualifications, as curriculum development reoriented to this energy sector can help to equip the workforce with the right skills and consequently increase opportunities for local employment. Several universities in Spain have proposed different research programs focused on renewable energy. Some examples are the following:

• The Universidad Internacional de Valencia has developed a Master’s Degree in Renewable Energies [45]. This Master’s degree offers a complete vision of the area of renewable energies. The focus on and understanding of each of the technologies that are the protagonists of this sector lead to the ability to occupy different jobs in companies specializing in energy services: design, construction of equipment, assembly, operation, and maintenance.
• The Universidad Carlos III de Madrid offers a Master’s Degree in Renewable Energies in Electrical Systems [46]. The general objective of this Master’s degree is to train professionals who can carry out their activities in the electrical sector and in the renewable energy sector, dealing with the technological development and innovation of these emerging technologies. The degree will principally address the following aspects: (i) renewable energy technology; (ii) the management and determination of the profitability of renewable energy projects and companies; and (iii) specific training focused on smart grids.
• The Universidad Nebrija has developed an Online Master’s Degree in Renewable Energies [47]. This Master’s degree offers in-depth knowledge of the current renewable energy environment and the acquisition of the skills, knowledge, and techniques required for its development and implementation in various fields, from administration to business and industry.

Cooperation between the administration, educational centers, and companies is necessary for the energy transition to be successful in the workplace. To do this, administrations must strengthen ties between educational centers and the labor market, updating educational offerings, promoting soft skills in studies, advancing the challenge of STEM (Science, Technology, Engineering, and Mathematics) education, and committing to a quality and innovative vocational training, among other measures. Companies must, meanwhile, improve the recycling of their professionals, promote collaboration with administrations and other entities related to the labor market and training, reinforce dual vocational training, and encourage a greater participation of women in the sector. And lastly, “workers must become aware of the importance of training throughout their lives” [48].

2.3.4. Employment

One of the most important social impacts usually addressed in studies on PV energy is job creation. Employment in the renewable energy sector has grown globally, despite the pandemic, and will continue to increase (see Section 2.2.3). It should be noted that, although the renewable energy sector employs people from all trades and educational levels, in the case of the onshore wind energy and solar photovoltaic subsectors, more than 60% of the workforce requires a minimum of training. Smaller numbers of university graduates in STEM are required (around 30%), and highly qualified non-STEM professionals (such as lawyers, logistics experts, marketing professionals, or regulation experts) represent approximately 5%, while administrative staff represent 1.4% [49]. Furthermore, in a scenario in which countries comply with the Paris agreement in order to limit global warming to 1.5 degrees, half of the 122 million jobs that it are estimated will be created by 2050 will require primary or secondary education. Likewise, in the same scenario, half of the 122 million jobs that it are estimated will be created by 2050 will require primary or lower secondary education. An additional 37% of occupations will require upper secondary education. The remaining 13% of jobs will require people with a tertiary education, a Master’s degree or a doctorate.

2.4. Technological Analysis

The technological analysis is linked to innovations in technical aspects that affect the operations of industry/the market in a favorable/unfavorable manner. In this section, we provide a brief description of the evolution of photovoltaics, after which we provide the main R&D&i photovoltaic activity trends.

2.4.1. Technology Development

A common categorization with which to classify the evolution of PV technology in three generations has frequently been used by researchers, students, and analysts, among others. These basic generations differ from each other in terms of efficiency and cost (see Figure 5), and are designated as first-, second-, and third-generation, respectively.

The first generation of PV (denoted as Gen I in Figure 5) includes technology designs that are manufactured in a manner similar to computers and are related to wafer-based devices, usually crystalline silicon [50]. The second generation of PV (designated as Gen II in Figure 5) refers to technological designs manufactured on the basis of the principle of low-efficiency and low-cost cells. They are characterized by designs based on conventional thin films that require minimal materials and cheap manufacturing processes. The most popular materials used in the manufacturing of second-generation devices are cadmium-telluride (CdTe), copper-indium/gallium-diselenide/sulphide (CIGSS), amorphous silicon (aSi), and microcrystalline silicon ($\mu$cSi) [51]. The third generation of PV (denoted as Gen III in Figure 5) is based on advanced thin films with the objective of producing low-cost, high-efficiency cells [52]. These will probably be thin-film cells that use new approaches to obtain efficiencies above the SQ limit [53]. Research is currently ongoing, as will be shown below.

2.4.2. R&D&i Photovoltaic Activity Trends

The photovoltaic industry is in a state of continuous evolution and innovations are taking place throughout the value chain, which implies exploring progress in (see Figure 6) (i) materials and module manufacturing; (ii) applications; (iii) operation and maintenance systems; and (iv) dismantling and end of service life management.

• Materials and advanced module manufacturing. The greatest growth in the solar photovoltaic industry is highly dependent on reducing the system balance, which accounts for the largest share of total installed system costs and has the highest potential for cost reduction. Different means of achieving this are the following:

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  With regard to materials, the progress made in R&D&i has been focused on both existing and emerging technologies, with the objective of reducing costs and making significant improvements to performance [54]. Gen I technologies have evolved as regards all items in the photovoltaic value chain [55]. Technologies based on tandem/hybrid cells [56] and perovskite also have interesting possibilities, but in the longer term, owing to barriers that still need to be addressed and overcome (durability, price) [57].

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  With regard to advanced module manufacturing, a critical technology factor that has enabled the achievement of higher efficiency levels is the emergence of passivated emitter and rear cell/contact (PERC) technologies [58], which are compatible with other recent technologies, such as half-cut cells [59], among others. In the short/medium term, the most important technology factor in the market is associated with bifacial cells and modules [60], which are achieved by implementing the aforementioned advanced cell architectures and are focused on system output levels.

• Applications. Bearing in mind the current PV expansion worldwide, interesting research projects/prototypes are currently under construction/study with the aim of activating the growth of the future market. The main developments regarding applications are as follows:

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  Floating PV (see Figure 7a), which is an exciting emerging market that has attracted a great deal of attention because of its numerous advantages: (i) energy efficiency; (ii) high power generation efficiency owing to the lower temperature beneath the panels; and (iii) the shading of the plant, which reduces water evaporation and algae growth, leading to benefits for the aquatic environment and improvements in water quality, among others [61].

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  Building integrated PV (BIPV) panels (also known as solar shingles), which make it possible to reduce the cost of renovating existing buildings and create a business space for the development of efficient strategies [62]. When compared to classic roofing materials, BIPV cladding is somewhat more expensive but provides greater versatility and design flexibility as regards its size, shape, and color [63] (see Figure 7b). Furthermore, when the additional revenue generated by the electricity produced is taken into account, this higher cost is more than offset.

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  Solar Trees, which work in a very similar way to real trees (see Figure 7c), as they have leaf-shaped solar panels connected via metal branches that use sunlight to produce energy [64]. Solar trees can be viewed as a complement to rooftop solar systems. They are characterized by the fact that they produce the same amount of electricity as a horizontal solar plant, but they have the advantages of being more ergonomic and occupying 100 times less space and, as such, provide a solution to the economies of limited space and land [65].

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  Solar-Powered Desalination (see Figure 7d). Most desalination plants currently run on fossil fuels, thus making them unsustainable in the long term [66]. The most important technologies that allow the desalination industry to generate potable water are thermal (i.e., multi-stage flash, multi-effect distillation) and membrane-based (i.e., reverse osmosis, nanofiltration, and electrodialysis). Thermal desalination technologies need heat and electricity to function properly. Solar energy technologies, such as concentrating solar energy (CSP) and photovoltaic thermal (PV-T), have the benefit of delivering the required thermal energy as a by-product while generating electricity [67].

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  Solar Carports, which are solar panels mounted on the ground (see Figure 7e) that are installed to enable parking lots and house entrances to be placed underneath to form a carport [68]. They are characterized by the fact that, in addition to providing shade for the vehicles parked underneath, they can efficiently produce electricity and, therefore, provide the following benefits [69]: (i) if combined with a well-designed charging system, the electricity produced can be used to charge electric vehicles and thus reduce vehicle operating costs; (ii) independence with respect to the hours of sunshine, since they have battery storage integrated into them that is available in the system, thus providing improvements as regards energy storage; (iii) they are easy to customize and can save space, as they do not require an additional structure or terrain for their installation.

  Figure 7. Main developments regarding applications: (a) Floating PV (FPV) (reprinted from [70], Copyright 2014, with permission from Elsevier); (b) Building Integrated PV (BIPV) (image from [71], licensed under CC BY-SA 3.0); (c) Solar Trees (image from [72], licensed under CC BY-SA 4.0); (d) Solar-Powered Desalination (image from Financial Tribune [73]); (e) Solar Carports (image from [74], licensed under CC BY-ND 2.0); (f) Solar PV-Thermal Systems (reprinted from [75], Copyright 2022, with permission from Elsevier); and (g) Agrophotovoltaic (APV) (image from [76], licensed under CC BY-SA 4.0).

  Figure 7. Main developments regarding applications: (a) Floating PV (FPV) (reprinted from [70], Copyright 2014, with permission from Elsevier); (b) Building Integrated PV (BIPV) (image from [71], licensed under CC BY-SA 3.0); (c) Solar Trees (image from [72], licensed under CC BY-SA 4.0); (d) Solar-Powered Desalination (image from Financial Tribune [73]); (e) Solar Carports (image from [74], licensed under CC BY-ND 2.0); (f) Solar PV-Thermal Systems (reprinted from [75], Copyright 2022, with permission from Elsevier); and (g) Agrophotovoltaic (APV) (image from [76], licensed under CC BY-SA 4.0).

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  Solar PV-Thermal Systems, which incorporate the production of both types of solar energy in a collector (see Figure 7f). Their behavior is supported by a photovoltaic solar panel in combination with a cooling system in which the cooling agent (air or water) circulates around the photovoltaic panels with the aim of cooling the solar cells, signifying that the hot water or air that comes out of the panels can be used for domestic applications such as domestic heating [77]. The benefits obtained from this cooling system are the following [78]: (i) the efficiency of photovoltaic systems in the electricity sector is substantially increased, and (ii) it allows heat to be obtained from the photovoltaic system in a wide variety of applications and industries for use in water, space, or process heating, among others.

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  Agrophotovoltaic (APV), which is characterized by the combination of photovoltaic solar energy and agriculture on the same land (see Figure 7g) and consists of growing crops under solar panels [79]. Attention is currently being paid to this concept, since several researchers have determined the benefits for both crops and solar panels as regards growing food crops in the shade that solar panels provide [80]. On the one hand, the growth of food crops is increased in those areas that are shaded by the PV panels because they protect the food crops from direct sunlight and the losses of water via transpiration are reduced, and the use of water is consequently reduced while simultaneously maintaining the same level of food production. On the other hand, the efficiency of the solar panels is increased because the growth of crops under solar panels reduces the temperature of the panels. This is because the crops below are continuously emitting water by means of their natural transpiration process [81].

• The Operation and Maintenance (O&M) stage of a photovoltaic project is a key component because it is responsible for the maintenance of high levels of both technical and economical performance during its lifespan [82]. What is more, the O&M phase is the longest in the lifecycle of the photovoltaic project, which is usually between 20 and 35 years [83]. The mitigation of all the possible potential risks is, therefore, fundamental as regards ensuring the quality of the different O&M services. Significant trends in O&M innovations are consequently becoming important for the preservation of market requirements and for increasing the module life of PV installations [84]. These are grouped as follows:

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  Intelligent monitoring of PV power plants by means of drones. The expansion observed in the photovoltaic markets has fostered the development of medium- and large-size power PV plants consisting of thousands of modules, which has led to an increase in the use of advanced inspection, diagnosis, and monitoring tools [85]. Standard monitoring approaches are normally performed by conducting manual inspections, which are usually time-consuming, could produce unwanted stoppages in energy generation, and frequently require laboratory instrumentation, which is cost-effective only in the case of disastrous failures [86]. The introduction of intelligent systems based on the use of drones equipped with appropriate sensing elements (see Figure 8a), such as visual and/or thermal cameras and automatic tools for image processing and fault detection and classification, makes it possible to inspect large-scale photovoltaic plants and detect faults, such as cracks, hot spots, or snail trails, in less time and in a more accurate manner than human inspection, thus increasing cost-effective O&M [87].

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  Smart PV plant power output forecasting. The generation of electricity by photovoltaic plants is strongly influenced by climatic conditions, such as solar irradiance and air temperature [85], and obtaining accurate simulation models and meteorological forecasting resources for a reliable forecasting of the power generated by a photovoltaic plant (see Figure 8b) is, therefore, essential. These tools have consequently become very useful as regards capturing economies in electrical markets with an important penetration of renewable energies of a non-predictable nature [88]. Forecasting algorithms have different timescales depending on the objective sought; the very short (up to one hour) and short (up to 6 h) timescales appertain to intraday forecasts, while longer forecasts could have timescales of one or more days [83]. With regard to the spatial extension, forecasting can be related to a single plant or, for regional models, a cluster of plants [89].

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  Smart PV plant monitoring. This is the development of innovations in monitoring systems (see Figure 8c) with the objective of improving the capacity to identify the fundamental causes that lead to poor performance and the unavailability of the system. These innovations are related to single plant and system portfolio management, and monitoring can be grouped in the following categories [90]: (i) the development of automated maintenance (preventive and corrective), intervention, and re-scheduling systems employing photovoltaic plant parameters (alarms, performance data, etc.) [91], and (ii) the creation of advanced models for reliability predictions, fault detection in equipment, or determination of plant behavior by applying advanced simulations tools and historical failure data [92].

  Figure 8. Main developments regarding applications: (a) Intelligent monitoring of PV power plants by means of drones (reprinted from [93], Copyright 2018, with permission from Elsevier); (b) Smart methodology for forecasting the power output one hour ahead of a PV system based on nonlinear autoregressive neural networks (NARs) and artificial neural networks (ANNs), where G denotes the forecasting solar global irradiance one hour ahead, $T(t+1)$ represents the forecasting air temperature one hour ahead, $P_{module}$ is the power output of the PV module, $N_s$ and $N_p$ represent the number of PV modules in series and in parallel, and $P_{generator}$ expresses the power of a PV generator (reprinted from [94], Copyright 2014, with permission from Elsevier); (c) Basic architecture for PV monitoring (reprinted from [92], Copyright 2018, with permission from Elsevier); (d) Photovoltaic Panel Active Cooling System (reprinted from [95] under the terms of the Creative Commons Attribution License); (e) Autonomous robotic vehicle for cleaning PV panels using steam as a cleaning method [96,97,98] (image by R. Morales, co-inventor of the patent [98]); and (f) example of matting treatment (image by Dave Buckner (NREL) [99]).

  Figure 8. Main developments regarding applications: (a) Intelligent monitoring of PV power plants by means of drones (reprinted from [93], Copyright 2018, with permission from Elsevier); (b) Smart methodology for forecasting the power output one hour ahead of a PV system based on nonlinear autoregressive neural networks (NARs) and artificial neural networks (ANNs), where G denotes the forecasting solar global irradiance one hour ahead, $T(t+1)$ represents the forecasting air temperature one hour ahead, $P_{module}$ is the power output of the PV module, $N_s$ and $N_p$ represent the number of PV modules in series and in parallel, and $P_{generator}$ expresses the power of a PV generator (reprinted from [94], Copyright 2014, with permission from Elsevier); (c) Basic architecture for PV monitoring (reprinted from [92], Copyright 2018, with permission from Elsevier); (d) Photovoltaic Panel Active Cooling System (reprinted from [95] under the terms of the Creative Commons Attribution License); (e) Autonomous robotic vehicle for cleaning PV panels using steam as a cleaning method [96,97,98] (image by R. Morales, co-inventor of the patent [98]); and (f) example of matting treatment (image by Dave Buckner (NREL) [99]).

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  PV Panel Cooling System. Although increasing efficiency and maximizing the energy production of photovoltaic solar energy is one of the main objectives sought, difficulties currently persist as regards addressing the need to keep photovoltaic solar modules cool (see Figure 8d), as the heat from the sun reduces their performance and service life [100]. In fact, both the service life and the voltage output of solar panels are significantly degraded as a result of chemical reactions that double for every 10 °C rise above an ambient temperature of 25 °C [101]. Typical photovoltaic panel-cooling solutions are based on PV-T technologies [102].

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  Anti-soiling solutions. In order to avoid significant losses in the performance of photovoltaic plants owing to the accumulation of dirt, it is important to carry out periodic washing operations. For example, note that, in Europe, the accumulation of dirt on photovoltaic panels can cause average power losses of around 2% in places with very rainy climates, but in places with little rain, power losses could be 11%. There are currently some interesting solutions by which to address this problem, which are listed as follows: (i) solutions based on robotic applications that move along the matrix of the panels and use steam as a cleaning method (with a considerable reduction in water consumption), achieving an environmentally sustainable and respectful cleaning procedure by avoiding the use of highly polluting soaps, waxes, and detergents [103] (see Figure 8e); (ii) the use of sprinkler systems, which allow the cleaning of the panels in very dry areas, obtaining the same effect as rain, through the use of a water filtration system and a soap dispensing system [83]; and (iii) the use of anti-dirt coatings makes it possible to obtain levels of performance for longer, with some of these already being commercially available [83].

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  Biotechnology/selection of seeds for zero treatment of vegetation. In order to avoid the appearance of shadow regions in photovoltaic plants mounted on the ground, vegetation control must be carried out (avoiding the use of pesticides and other dangerous products), both inside and in the vicinity of the photovoltaic plant [99] (see Figure 8f). Innovations in this field include [90] (i) the use of weed control fabrics, which combine both soil erosion control and weed control, inside the photovoltaic plant, under the photovoltaic modules, and around the perimeter of the photovoltaic plant in order to reduce weed growth and allow the maintenance operations in these areas to be minimized; and (ii) the selection of seeds from plants with both a limited height and slow growth so as to reduce the frequency of maintenance operations.

• Dismantling and end of service life management. As in any real project, as time goes by, the panels progressively deteriorate and are eventually withdrawn from service. In this respect, in order to make better use of the photovoltaic modules and achieve a longer service life, it is necessary to search for innovative solutions in order to [104] (i) reduce the use of materials and avoid, as far as possible, the degradation of the photovoltaic modules, and (ii) search for solutions by which to reduce, reuse, and recycle the high volume of photovoltaic panels that are withdrawn from service. A description of these solutions is provided below:

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  Reduction in the amount of material used in photovoltaic panels. This is currently the best option by which to increase the efficiency of the panels [105]. In recent years, the major advances in this area have been geared towards cost savings by minimizing the amount of material used per panel, along with reducing the amount of hazardous materials used [106]. However, it should be noted that, although the availability of basic materials (such as boron, metallic silicon, or silver) is not a major concern in the short term, critical materials (such as cadmium and tellurium in the case of CdTe panels or indium, selenium, gallium, etc., in that of CIGSS cells) may impose long-term limitations [107].

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  Reusing the recycled photovoltaic panels (see Figure 9a). The highest growth in the installation of photovoltaic panels has occurred in the last six years [108]. At present, the useful life of a solar panel is estimated to be around 30 years, and a 6-year-old panel is estimated to have an aged by around 20% [109]. When a problem is detected in a photovoltaic panel (owing to failure or imperfections) during the initial phase of the panel, customers often claim repair or replacement warranties, and insurance companies may participate in order to compensate some or all of the repair/replacement costs [110]. In the event of panel replacement, it is customary to carry out a series of tests on the panel in order to be able to repair it and to recover some of the value of a panel returned through resale. Another option for these panels is, once repaired, to re-sell them in the second-hand market (as used panels or as spare parts) at a reduced market price of approximately 70% of the original sale price [111].

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  Recycling from the dismantling and treatment of photovoltaic panels (see Figure 9b). The current amounts of photovoltaic waste are very moderate, which reduces the economic incentive to create plants dedicated to the recycling of photovoltaic panels, since photovoltaic panels are normally dealt with in existing general recycling plants at the end of their lifespan. In the long term, the construction of recycling plants specializing in photovoltaic panels could increase the treatment capacity and maximize revenues by means of a better production quality, together with an increase in the percentage of the recovery of valuable components [111]. Considering the estimated growth in the volumes of photovoltaic panel waste, studying the management of photovoltaic panels at the end of their lifespan, together with the associated socioeconomic and environmental benefits, is of great interest [112]. The creation of value derived from photovoltaic management at the end of its useful life implies [113] (i) freeing up raw materials (including their value), and (ii) the creation of new industries and jobs in the photovoltaic sector.

  Figure 9. Principal challenges as regards dismantling and end-of-service-life management: (a) Collect and reuse of PV panels (image by [114] is licensed under CC BY-NC-ND 4.0); (b) Sequence employed to obtain pulp from PV panels (reprinted from [104] under the terms of the Creative Commons Attribution License): (b.1) general view of PV panel before recycling; (b.2) view of the hammer crusher; (b.3) recovered pulp-recycled material.

  Figure 9. Principal challenges as regards dismantling and end-of-service-life management: (a) Collect and reuse of PV panels (image by [114] is licensed under CC BY-NC-ND 4.0); (b) Sequence employed to obtain pulp from PV panels (reprinted from [104] under the terms of the Creative Commons Attribution License): (b.1) general view of PV panel before recycling; (b.2) view of the hammer crusher; (b.3) recovered pulp-recycled material.

2.4.3. Technological Position of Spain

The economic sector associated with PV energy is sometimes related only to the manufacture of one of its components: the module. However, the value chain of this technology is much broader. In addition, the module participates in the cost of the project increasingly to a lesser extent (below 35%) and its manufacture has very low commercial margins (the price of photovoltaic panels has been decreasing in recent years, going from EUR 3.3/W in 2007 to EUR 0.23/W in 2021 [115]). In the PV value chain, apart from manufacturing other components that have a greater weight in the final cost of the installation, there is a wide variety of activities that generate economic growth and employment, as illustrated in Figure 10. Moreover, the module manufacturing market is currently characterized by a high overcapacity and strong pressure on manufacturers to reduce prices. As a result, there are low margins and falling prices, which has even led to the closure of Chinese factories [115]. Specialization in other elements of the value chain, whose weight in the total cost of the project will increase, is therefore recommended. The priority segments will be those in which a competitive advantage can be obtained, such as trackers, power electronics, and small- and large-scale storage. In this respect, the Spanish photovoltaic industrial sector has a favorable position as it is one of the ten largest manufacturers of solar trackers and inverters worldwide. The structures are, similarly, part of the manufacturing chain that is eminently local.

Finally, from the point of view of the trade balance, it can be observed that the Spanish PV solar energy sector is a net exporter. The data for 2021 once again exceeded those of the previous year, with a total of EUR 3012 M, unlike those of 2020, whose impact was EUR 2431 M. The activity with the greatest number of exports was manufacturers, at 41%, followed by engineering and installers, at 28% [6].

2.5. Environmental Analysis

The environmental analysis concerns studying all the ecological factors that influence the industry/market. It is necessary to note that economic growth in a country has always been accompanied by an increase in its energy consumption. The consequences of this increase can translate into a greater use of resources, which eventually leaves its mark on the environment [116]. The following subsections show descriptions of the main environmental impacts of solar PV systems, along with the specific effects of climate change in Spain and important steps that the Spanish government has recently taken with regard to environmental matters.

2.5.1. Environmental Impacts of Solar Photovoltaic Systems

PV energy technologies have positive environmental impacts when compared to conventional energy technologies in terms of reducing greenhouse gas emissions (CO${}_2$, N${}_2$O, CH${}_4$, etc.) or preventing toxic gas emissions (SO${}_2$, particulates), among others. However, like any power generation system, the environmental impacts of photovoltaic power generation systems appear from the manufacturing stage [117], continue during the installation and operation of the PV farm [118], and end with the dismantling and disposal or recycling of PV solar equipment [119]. A summary of the most significant environmental impacts is provided in Figure 11, and they are described below:

• Land Use. The construction of a PV facility usually involves the use of concrete and, implicitly, the use of heavy machinery, which usually causes intense noise, visual disturbances, and a possible increase in the formation of dust and vibrations if the construction level increases (owing to the installation of the structures, cable excavation processes, or connection of the infrastructure) [120]. The natural habitat, the soil, and the environment are consequently disturbed because the land and its flora are moved around during construction [121]. The soil’s inherent biological crusts are turned over, the soil becomes vulnerable to soil erosion, and the rate of water infiltration changes [122]. The use of floating PV systems, if it is possible to use them, can reduce the use of land [123], and these systems are additionally characterized by being able to generate more energy than terrestrial PV systems [124] owing to the higher efficiency resulting from the continuous cooling caused by the evaporation of water at the rear of the floating PV panels. Moreover, the use of floating PV technologies helps to diminish water losses from freshwater bodies [125]. However, the original ecosystem may take many years to recover [118], especially in deserts where recovery is slow [38]. Therefore, it takes time for the flora and fauna to return during the operational phase [118].
• Air pollution and Climate Change. The impact that a PV system has on air quality and climate change is significantly less than that of any other traditional power generation system [126]. One of the most important advantages of using PV technologies is that they provide zero carbon dioxide, methane, sulphur oxide, and nitrogen oxide (CO${}_2$, CH${}_2$, SO${}_X$, and NO${}_X$, respectively) emissions during operation, leading to negligible effects on both air pollution and global warming [119]. However, according to scientific studies carried out on the emissions produced by PV systems during their life cycle phases (manufacturing, transportation, installation, operation, and completion with disposal/dismantling), the manufacturing stage produces the most emissions, followed by the construction and operation stages [127].
• Hazardous material emissions. The manufacture of PV cells implies the use of various hazardous materials (silicon (Si), cadmium (Cd), tellurium (Te), copper (Cu), selenium (Se), and gallium (Ga)) during the extraction of solar cells or the etching and cleaning of semiconductor surfaces [128]. In order to use these raw materials, both mining and extraction and purification processes must be carried out [129]. In fact, most of the aforementioned materials are produced as by-products of the extraction of other metals [130]. In addition, many chemicals and solvents (hydrogen, hydrochloric acid, nitric acid, isopropanol, ammonia, and selenium hydride) are used in considerable quantities in the separation, extraction, purification, production, and cleaning processes of the different types of solar cells. Most of these compounds require special handling because they are flammable, corrosive, toxic, and carcinogenic, and the volume of emissions of these dangerous gases and chemical solvents will be different depending on the type of material used in the manufacture of PV cells [131]. In order to reduce the environmental impact and maintain the supply of raw materials (most of the metals used in the manufacture of PV cells are rare), it is necessary to carry out recycling strategies for waste and discarded photovoltaic modules, as discussed previously in Section 2.4.2.
• Water usage. The study of the life cycle of PV systems makes it possible to verify that the consumption of water in these systems during operation is negligible [132]. This review shows that water consumption in PV systems is focused principally on two aspects: cooling and panel cleaning. In the case of consuming water for cooling, the amount of water consumed can be minimized through the use of cooling water recirculation systems and the implementation of dry or hybrid cooling-based ventilation systems [133]. The cleaning of PV systems, meanwhile, increases efficiency, although, as more water is used, the total cost increases as a result of the use of water [134]. In this respect, both the amount of water required and the frequency of cleaning depend on the study of parameters of different natures, such as the characteristics of the dust, the speed and direction of the wind, the orientation and angle of inclination of the panel, the temperature, air pollution, humidity, rain, vegetation, or glaze properties, among others [135].
• Noise and Visual Impacts. Noise is defined as undesired sound [136] and is considered a type of pollution owing to its impact on human health [137]. In solar and photovoltaic energy conversion devices equipped with ventilation, the main sources of noise waves occur as the result of differences in power intensity between photovoltaic installations [138]. Photovoltaic modules produce hardly any noise pollution during their operation, mainly owing to the fact that they do not contain moving or rotating parts [38]. However, during the construction phase, when operating machinery and heavy vehicles of various kinds are in use, residences, wildlife, and nearby travellers may be affected by noise pollution [139]. At this point, it is necessary to highlight that the noise pollution during the construction phase of PV facilities is minor and less than that of other renewable energy systems [116]. The visual impact, or visual pollution, meanwhile, typically depends on the area of installation, has a negative impact in large PV projects [135], and may lead to conflicts (opposition to the PV installations or the hindering of their implementations) with the public, local communities, or environmental activists when the installations are carried out in zones with a high degree of impact [139]. Most PV power plants are installed in rural areas, which is why their negative influence on the landscape is significant [140]. A possible solution as regards reducing this negative influence is to mount PV panels on rooftops and building facades [141].

2.5.2. Environmental Position of Spain

The effects of climate change in Spain have resulted in an increase in average temperature, a general decrease in the level of rainfall throughout the territory, and a lengthening of the duration of the driest periods. These effects have increased the risk of desertification, damaging the ecosystem and minimizing the biodiversity on the peninsula [142]. In this respect, the increase in the level of greenhouse gas emissions not only damages the ecosystem, but also contributes to reducing the population’s quality of life, causing respiratory problems, vascular diseases, and increasing the chances of suffering from cancer [143]. Photovoltaic energy would, in this respect, be among the cleanest energy sources [144]. Furthermore, given that Spain occupies a privileged position owing to its geographical location and its climate, the implementation of photovoltaic energy projects should be more widespread and supported by institutions [145]. It is worth mentioning that one of the most important steps that the Spanish government has recently taken in environmental matters has been The Draft Law on Climate Change and Energy Transition (DLCCET) [146], which will be studied in Section 2.6.2 and which seeks to make Spain neutral as regards carbon dioxide (CO${}_2$) emissions by 2050 and to ensure that the Spanish electricity system is 100% renewable by that time.

2.6. Legal Analysis

The legal analysis appertains to the assessment of legal factors in terms of their ability to affect industry/the market environment. The following subsections will illustrate the laws brought into being by the Spanish government for the field of renewable energy in order to both deal with the economic crisis left by the pandemic and accelerate sustainability policies in general. Several proposals that may be of great interest as regards promoting the Spanish economic recovery are also presented.

2.6.1. International and National Frameworks

Over the last few years, the Spanish electricity sector has been mired in a reform process with the aim of covering the lack of regulations and the technological advances that have occurred since the process of liberation of the sector that was initiated with Law 54/1997 [147]. The numerous laws and royal decrees approved during the economic crisis of 2008 [148] caused a certain degree of regulatory uncertainty, thus discouraging investment, and did not contribute to solving the problems of the sector [149]. Although Law 54/1997 made it possible to achieve the objectives concerning the fight against climate change established by the European Union, the economic/financial stability of the system was not guaranteed, and it suffered from budgetary imbalances. The new sector law 24/2013 of 26 December [150] was consequently applied with the aim of solving the majority of problems, and its objective was to guarantee the supply of electricity and adapt it to the needs of consumers in terms of safety, quality, efficiency, objectivity, transparency, and minimum cost. The principles of operation and remuneration for the different agents in the sector were, therefore, established.

With regard to regulations on renewable energy, after several years of incentives for investment and production, the arrival of the 2008 economic crisis led to the promotion of numerous laws and royal decrees with which to regularize the activity and reduce the cost of the system [148]. After several years of instability, a new regulation was promulgated under Royal Decree 413/2014 of 6 June, in which old and new production agents were grouped together [151]. This decree regulated various aspects of the new remuneration system for renewable energy sources, whose production had previously received incentives to guarantee its viability and development. These political decisions made in Spain meant that the photovoltaic sector developed slowly (despite having a high average number of solar hours together with an excellent climate and geographical position) when compared to other countries such as Germany or the United Kingdom [152]. In addition, the PV sector in Spain slowed down more than the wind sector owing to the following. (i) The cost of photovoltaic premiums skyrocketed (its premium is 10 times higher than wind power), despite the fact that its production is one of the smallest (it consumes twice as much as wind energy and produces a fifth in absolute terms) [153]. As illustrative data, note that, in 2018, wind power charged a premium of EUR 1480 M for 36,143 GWh, while photovoltaic power charged a premium of above EUR 2500 M for 7765 GWh. (ii) The regulations did not provide potential investors in solar farms with legal certainty or economic returns, in addition to the fact that the cost of the PV equipment was relatively expensive when compared to that required for wind power [152]. In 2015, Royal Decree 900/2015 of 10 October was approved, containing the so-called sun tax, which obliged self-consumers of PV energy to pay a tax in order to contribute to the Spanish electricity system [154]. This new regulation represented a setback for the Spanish energy transition towards PV self-consumption [155]. Two years later, as a result of the ruling of the Constitutional Court 68/2017 of 25 May, some articles of Royal Decree 900/2015 were modified, which was the first step towards eliminating obstacles to self-consumption [156]. The definitive step came in Royal Decree Law 15/2018 of 5 October [29], which was approved after a change of government, and later in Royal Decree 244/2019 of 5 April [157], in which measures aimed at accelerating the energy transition towards a model based on renewable energies were adopted. The sun tax was eliminated, the administrative and technical procedures for self-consumption facilities were simplified, and an economic compensation for surplus clean energy was approved. The DLCCET [146], approved on 29 May 2020 by the Council of Ministers of the Spanish government, incorporates all economic sectors into climate action, from energy generation and finance to primary sectors, including transport, industry, or public administrations [146]. Their joint and transversal contribution will, over the next few decades, be decisive as regards attaining the goal of climate neutrality no later than 2050, in coherence with scientific criteria and the demands of citizens, and will make it possible to adapt to the new industrial revolution associated with a low-carbon economy. An explanation of this Draft Law will be provided in Section 2.6.2.

Finally, with regard to the European Community, the implementation of Directive 2009/28/EC by the European Parliament and the Council of 23 April 2009 stands out [158]. This legal text is an attempt to promote the development of renewable energy sources in all member countries. The objective of the directive is to comply with the community’s objectives in the fight against climate change established for 2020. A common framework has, therefore, been established for the development of action plans in each country, which must ensure that they provide regulations, information, and relevant training for stakeholders.

As can be seen from the aforementioned regulations, the turning point and change of direction in the photovoltaic sector occurred in Spain in 2017, mainly for the following reasons [159]: (i) the allocation of 3.9 GW of new capacity in the auction held in July 2017 [160]; (ii) the technological competitiveness of the sector and the progressive lowering of the production costs; (iii) the objectives for the penetration of renewable energies into the energy mix defined in the legal framework of the EU; and (iv) the growing awareness regarding the development of self-consumption as an effective and indisputable measure for energy savings and reductions in CO${}_2$ emissions.

2.6.2. Draft Law on Climate Change and Energy Transition

The DLCCET [146], approved on 29 May 2020, by the Council of Ministers of the Spanish government, seeks to make Spain neutral as regards carbon dioxide (CO${}_2$) emissions by 2050 and to ensure that the Spanish electricity system is 100% renewable by that time. In addition to achieving climate neutrality between now and 2050, by 2030 it is established that emissions will have to be reduced by at least 20% when compared to 1990, in accordance with the increased ambition of the European Commission, which has, as a whole, proposed a reduction in emissions of between 50% and 55% when compared to 1990. Continuing with 2030, which is the intermediate reference year, it has been established that at least 35% of final energy consumption will have to be of a renewable origin, and this must be at least 70% in the case of electricity. By 2050, 100% of electricity should be generated from renewable energies and primary energy consumption should be 35% less. The government estimates that the ecological transition process could attract the mobilization of EUR 200,000 M of investment until 2030 and create between 250,000 and 350,000 net jobs per year. In order to meet the objectives established, successive National Energy and Climate Plans (NECPs) will be implemented. The first, which marks the path between 2021 and 2030, was sent to the European Commission on March 31 and sets out a trajectory that will reduce emissions by 23% when compared to 1990 by the end of this decade, and will double the percentage of renewable energies in final consumption by up to 42%. In this respect, the presence of clean energy in the electrical system will reach 74% and efficiency will improve by 39.5%. The draft contemplates that the mobilization of investments, the saving of energy, and the greater presence of renewable energies will mean that the GDP will grow by around 1.8% in 2030 with respect to the same scenario without NECP measures, that is, from EUR 16,500 to 25,700 M. The objectives of the path of decarbonization and the fixing of a reduction in CO${}_2$ emissions will, along with the successive NECP, be specified in the Long-Term Strategy 2050, which is also being finalized by the current Spanish government.

3. Micro-Environment Strategic Analysis of Photovoltaics in Spain

Competition between companies establishes the growth rate of a country’s economic sectors [161]. A detailed analysis can, therefore, permit the establishment of strategies with which to carry out projects that are distinguished from the rest in order to accomplish greater profitability. This will be done by developing Porter’s five forces method [162], illustrated in Figure 12, which consists of analyzing the threat of new entrants, threats from substitution products and/or services, the bargaining power of suppliers, the bargaining power of buyers, and competitive rivalry. This will be dealt with in the following sections.

3.1. Threat from New Entrants

The degree of ease or difficulty with which new entrants can enter the market can determine the profitability of projects. Owing to the need to gain a market share, the new participants will exert pressure on various factors such as prices, costs, or investment [163,164]. To prevent this from happening, each sector presents a series of entry barriers that limit the access of new agents to the market. The following can be found in the PV sector in Spain:

• Economic barriers. The recession that began in 2008 has impaired the ability of many participants to attempt to access a market with already high initial capital requirements. Moreover, the problem is aggravated by the difficulty involved in accessing sources of financing that will commit to projects in exchange for financially acceptable interests. It is, therefore, necessary for the projects to present adequate rates of return in order to obtain the necessary resources at lower rates. In this respect, the drop in the price of the photovoltaic modules and other components of the facilities has helped to increase profitability in this sector. Nevertheless, institutional support in terms of premiums for production is still necessary, as has occurred in various countries in the Euro zone. However, in Spain, this type of aid has been reduced owing to budgetary imbalances resulting from the lack of regulation and speculation. The execution of electricity generation projects also requires the payment of permits to the different administrations for the connection to the grid, which can be up to 4% of the total investment.
  Furthermore, the existence of economies of scale in the supply means that a small percentage of the producers possess lower unit costs than the rest. This situation leaves the small producers at a clear competitive disadvantage when compared to already established agents with higher production quotas. This relationship was shown during the analysis of the sector for the supply of electricity, gas, steam, and air conditioning, in which a small group of large companies obtained higher returns through higher investment quotas. Large producers and established agents will similarly have better access to the distribution networks, along with a more diversified generation mix that will allow them to respond to demand with greater freedom [165].
• Administrative barriers. The administrative procedures required for the implementation of electricity generation networks are excessive in Spain. Compliance with at least thirty different administrative procedures is currently required, with the temporary and economic cost that this entails. This situation can take time from the beginning of the installation to the start-up of the system, thus increasing the opportunity cost associated with the project [165].
• Technical barriers. Photovoltaic installations require an access and connection point at which to inject all the energy generated into the grid. In order to obtain connection and access to the network, it is first necessary to evaluate whether the access capacity is sufficient, and to present a study regarding the project and its execution plan. However, the increase in the demand for connections, the lack of access points in certain geographical areas, and the lack of a preference criterion for renewable energy sources may cause difficulties during the process or impede its progress [165].

3.2. Threat from Substitution Products and/or Services

The existence of products/services that perform the same function may determine the success or failure of a project [166,167]. In this respect, as will be observed in the structure of the electricity sector, there is currently a mix of renewable energies resulting from years of investment and development. However, the implementation of one type of technology or another will depend on various factors, such as geography, the level of energy required, the capital required, etc. In this respect, the following substitute products can be found in the current renewable energy mix:

• Hydraulic Energy. This uses the kinetic energy of stored water in order to channel it, putting into operation turbines that will transform it into electrical energy by means of a generator [168]. It is a mature technology that has high investment requirements, signifying that its implementation is limited to large specialized companies. Despite the renewable nature of generation, the environmental impact resulting from the construction of dams is very high [169].
• Wind energy. This uses the energy from the air for the operation of turbines and to generate electricity by means of generators [170]. They are usually installed in large-scale projects with a service life of 20 to 30 years. The initial investment requirements are consequently very high and can be met only by large specialized companies [171].
• Solar thermal energy. This takes advantage of solar radiation to generate electricity [172]. Unlike photovoltaic energy, this energy is used to heat water in order to transform it into steam and generate electricity. This technology can be applied to both residential use and large-scale projects [173].
• Biomass. This consists of the use of organic material of agricultural/forest origin for the generation of electricity [174]. The method begins with the process by which plants, through photosynthesis, store solar energy to carry out chemical processes to create organic material. The biomass generated can be used for the generation of electricity, thermal energy, or the production of fuels of vegetable origin [175].

3.3. Bargaining Power of Suppliers

The bargaining power of suppliers in the photovoltaic sector is low, as the price of photovoltaic modules follows a decreasing trend. Furthermore, the production of most of the components is carried out in developing countries, where operating costs are much lower [176,177]. The remainder of the system of which the solar panel is composed similarly originates from a mature sector focused on the mass production of components, and sales strategies are, therefore, usually focused on establishing low sale prices. Furthermore, bearing in mind that the service life of these systems is so long, and the maintenance costs are so low, the developers have greater power when it comes to obtaining better contracts [178].

3.4. Bargaining Power of Buyers

The bargaining power of buyers is low, since there are several regulated processes with which to establish the amount of energy to be produced and the price at which it will be paid between the main agents before reaching the final consumer. There are currently two different markets in the electricity market in Spain: the wholesale and the retail. The wholesale market, which is regulated by the Agent for the Iberian Energy Market—Spanish Pole, is responsible for matching the supply of production of electric generators and the sale price proposed by each agent, while the production demand and the purchase price are proposed by each marketer [179]. By crossing the data, an amount of energy and a matching price are obtained, which will reflect the terms with which the electricity to be generated the next day will be regulated and the price that each generator will be paid. Since electricity production can vary owing to a multitude of factors, there is an intra-daily market in order to correct any imbalances that occur. The retail market is that in which the marketers participate for sale to the final consumer by means of a fixed contract, or by being subject to the Last Resort Rate (powers less than 10 kW).

3.5. Competitive Rivalry

Since the transportation of electricity is a monopoly in Spain, the rivalry between competitors in the electricity sector lies in the generation, marketing, and distribution of energy [180]. If free competition is ensured, this consequently benefits the system, since it requires greater control over expenses, encourages investment, and increases pressure on the price level. However, given that a large part of the generation in Spain is concentrated in very few companies, the competition is not high. In addition, since the product offered is the same, only the way in which it is produced and distributed changes, and it is possible only to exert pressure by making low sale offers. However, the growth experienced in the sector, especially as regards renewable energy, has allowed many participants to enter the sector in order to compete with agents with high exit barriers. Competition in the sector has consequently been increasing since the beginning of its release, thus reducing the large producers’ participation quota. With regard to the commercialization of electricity, the increase in agents has similarly increased competition, particularly as regards the price of electricity [181]. All of the above makes it possible to state that the rivalry in the electricity market is of a medium level. The diversification in the sector and the fall in the price of the components have allowed an increase in the number of participants. However, the entry barriers in the field of generation are high, especially in the economic field. It is, therefore, important to achieve high profitability ratios that will make it possible to obtain resources with reduced financing quotas.

4. SWOT Analysis

In order to finalize this strategic analysis, a SWOT (Strengths, Weaknesses, Opportunities, and Threats) matrix will be carried out. This methodology makes it possible to combine the internal situation of the project with the external one, thus enabling the identification of the main strengths, weaknesses, opportunities, and threats for the development of strategies in the future. Please note that the SWOT analysis [182] is a simple and effective method with which to make the necessary decisions about the future, and helps to propose the actions that should be taken into consideration when starting a project. The SWOT analysis of the Spanish case is illustrated in Figure 13. This figure makes it possible to observe the following. (i) Regarding the strengths, the principal is the zero effect on the environment using inexhaustible resources. Bearing in mind the current climate change situation, in which adverse effects are becoming more tangible and are no longer just speculation, this sort of renewable energy is a very important factor in mitigating the effects of climate change and stopping the consumption of fossil fuels, thus reducing greenhouse gases, which are as harmful to society as they are to the environment. Some of the internal strengths also include the low maintenance cost required by the photovoltaic modules and the rapid recovery of the investment, because the useful life of the photovoltaic modules is up to 20 years, but the investment is recovered after 5 years. And, finally, another remarkable strength is the excellent geographical location of Spain, which is in the part of Europe with the highest solar irradiation, thus allowing its PV installations to achieve higher performances in comparison with other countries located further north in Europe. (ii) Regarding opportunities, these are mainly integrated by the current social commitment to the environment and to energy production from renewable energy sources. There is constant support for different institutions in the country, which allows a greater development. Another aspect is the excellent geographical location of Spain, as mentioned above, and finally, the constant innovation and development in this sector is a favorable aspect, in this case to obtain higher performances in the photovoltaic installations and even achieve grid parity with fossil fuels, thus reducing the costs of producing renewable energy. (iii) Regarding weaknesses, the principal weakness is the high investment requirements, since the modules and the equipment necessary for the installation are very expensive. Another aspect as regards the weaknesses is the situation of the equipment, which is located in the open air, thus making its deterioration greater than that of other facilities located inside buildings, and its useful life is consequently lower. The performance depends on uncontrollable variables, since it depends on the solar resource that is produced each year, signifying that energy production can be estimated, but not exactly known. And finally, the technology is in a continuous development process, and the maximum production potential has not, therefore, been reached. (iv) Regarding threats, these are mainly made up of the difficulty of obtaining financing, since Spain is in a recovery process since the 2008 financial crisis, which affected the whole world, but Spain to a greater extent, and which has also continued with the economic crisis caused by the COVID-19 pandemic. Another remarkable threat is the multitude of procedures that must be followed when carrying out a project of this nature since, in addition to spending a lot of time on these procedures, they entail a high economic cost. Finally, another important aspect is the competition in this sector. Despite the fact that there is not much competition, there are important companies that are very well-positioned in this sector and will, therefore, achieve higher returns.

5. Conclusions

This paper presents a strategic analysis of photovoltaic energy projects in Spain. It is based on the most up-to-date scientific works, reports, and guidelines, with the aim of being able to identify the most probable scenarios that an industry/market could face. The identification of these scenarios can help to find the best strategies that companies/businesses should implement. This strategic analysis was developed using the PESTEL and Porter methodologies, and grouping the key concepts in a SWOT chart in order to illustrate the competitive advantages and disadvantages of photovoltaic solar generation in Spain. The main conclusions obtained from this work are as follows. (i) The most important key factors and their interrelationships within the strategic analysis could be completely different depending on the point of view of each stakeholder, thus making it difficult to identify the most important factor to be considered. For example, the essential elements from the technology developers’ perspective are of a technological, economical, and environmental nature owing to the fact that they wish their technical advances to be simultaneously technically, environmentally, and financially sustainable, which will enable a profitable recycling business without any government support. From the investors’ perspective, the essential element is of an economic nature, as they will require a return on their investment. And from the general public’s perspective, the essential elements are of a social and environmental nature, as the possible impacts of these technologies could significantly influence their daily lives. (ii) With regard to the strengths and opportunities, the increased efficiency of the modules and the reduction in manufacturing and maintenance costs stand out, and increase their competitiveness when compared to other renewable and traditional technologies. In this respect, the rate of return on investment has been shortened over time. Furthermore, the fulfillment of the European Community’s objectives for 2020 and 2030 in the fight against climate change ensures a development framework that is promoted by governments and institutions. This energy transition process is widely supported by society, which sees renewable energy sources such as solar energy as a new model of more sustainable and efficient electricity generation. The environmental impact of solar energy during its service life is one of the lowest in the energy sector. (iii) With regard to weaknesses and threats, the instability that occurred in the sector after the economic crisis and the new remuneration system served as a brake on investment, causing zero growth in the sector over the last decade. The high degree of bureaucracy associated with accessing the Spanish electricity system similarly increases the associated opportunity cost, since the process required to achieve the commissioning of an installation can take time. The high initial investment costs and the difficulty in accessing sources of financing may additionally put the viability of projects into question. Since they are in the open air, the PV facilities suffer a greater deterioration and have a lower service life in comparison to other facilities located inside buildings. Lastly, the regulation and the structure of the system limit its capacity for action as regards differentiating itself in a market with an excess of installed generation capacity.

Finally, it is necessary to remark that the strategic analysis is an important process than an industry/market must carry out when making important decisions, since while there is more information on the macro- and micro-environment of the company/business, the decisions made will be less risky and more accurate for the performance of the organization. In this way, organizations become more efficient and competitive. It is noted that, owing to the heterogeneity of regions in Spain, the high number of public administrations whose regulations may vary from one region to another, the variety in power of installed facilities (from kW to hundreds of MW) carried out by both, small companies and large multinationals, and that, given that the Spanish Electricity Network belongs to the European Electricity Network (so an installation in Spain must meet practically the same technical requirements as in Italy, for example), the proposed study would be very useful for other countries and regions. On the other hand, the proposed research could be complemented with other strategic planning tools like (i) SOAR (Strengths, Opportunities, Aspirations, and Results) [183] if the efforts and resources are concentrated in specific areas that are considered as strong points with the objective to strengthen them and make them more efficient, or (ii) the Ansoff matrix [184] if the characteristics of the market are analyzed and the consequent strategies are focused on increasing the sales volume, be it with the creation of new products or the exploration of new markets. This will be the focus of our future research.