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ENERGY

Spain generated record 50% of power from renewables in 2023

Spain generated more than half of its electricity from renewable sources such as wind and solar power in 2023 in a "historic" record, the national power grid said Thursday.

Spain generated record 50% of power from renewables in 2023
The figure makes Spain one of the leaders in Europe in terms of the most renewable power capacity. (Photo by PHILIPPE DESMAZES / AFP)

According to data from the Red Eléctrica Española (REE), the production of electricity from renewable sources reached nearly 135,000 GWh last year, the equivalent of 50.4 percent of the overall national energy mix.

That percentage, which is eight points higher than 42.2 percent reached in 2022, represents a record, with Spain passing the 50 percent threshold for renewable electricity for the first time, an REE statement said.

Wind was the leading source of energy for the second year running, generating 63,000 GWh, or 23.3 percent of the total electricity generated in Spain.

And solar power installations generated 37,000 GWh of power, or 14 percent of the overall total, well above the figure for hydropower which accounted for 9.5 percent, it said.

The figure for nuclear-generated electricity remained stable, accounting for 20.3 percent of the total, while gas-generated power fell seven points to 17.2 percent over the same period.

The figures “are irrefutable proof that the green transition is advancing steadily in Spain,” said Beatriz Corredor, head of REE’s parent company Redeia, in a statement.

The government of Socialist Prime Minister Pedro Sánchez has pledged to increase the share of renewable-generated energy to 74 percent of Spain’s overall electricity production by 2030, a feasible target given the country’s natural abundance of sunshine and wind.

As a result, there has been a surge in huge projects involving solar installations and wind farms boosted by massive investment, notably in the sparsely-populated north and centre of the country.

The figure makes Spain one of the leaders in Europe in terms of the most renewable power capacity.

Germany also released preliminary figures in mid-December showing that for the first time, electricity generation from renewable sources was over 50 percent of the total in 2023.

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BANKING

Spain’s BBVA ups ante in Sabadell takeover bid

Shareholders in Spanish banking giant BBVA on Friday approved a capital increase needed to pursue its hostile takeover of its smaller rival Sabadell, which is opposed by the government.

Spain's BBVA ups ante in Sabadell takeover bid

At an extraordinary general meeting in the northern port city of Bilbao, 96 percent of shareholders gave their “overwhelming support to the capital increase needed”, a bank statement said, hailing it as “a very important milestone”.

The measure will allow the issuing of more than 1.1 billion shares, each worth €0.49, which could raise up to €552 million (about $600 million).

The final sum will depend on the number of Sabadell shareholders who agree to accept the offer.

READ ALSO: How would the BBVA takeover of Sabadell affect customers in Spain?

Raising the capital limit was necessary for BBVA to fund its bid, which was made on May 9th, in which it is offering to exchange one of its shares for every 4.83 Sabadell shares.

“We are fully confident in the success of this transaction, which represents a clear commitment to Spain and its SMEs,” or small and medium-sized companies, chairman Carlos Torres Vila said in a statement.

“The combination with Banco Sabadell will create a stronger, more profitable bank with greater capacity to support families and businesses in their projects for the future.”

“BBVA shareholders will obtain high returns on their investment, with limited capital consumption” while their Sabadell counterparts “will receive a highly attractive premium and a 16 percent stake in the bank resulting from the merger,” it said.

The takeover bid, the first hostile one in the Spanish banking sector in nearly four decades, would create a banking powerhouse capable of competing with Spain’s leading bank Santander.

It would also rival European giants such as HSBC and BNP Paribas.

BBVA initially tried to merge with Sabadell, which is based in the northeastern Catalonia region, in November 2020 but the smaller bank rejected the offer on grounds it didn’t reflect the real value of its business.

The takeover has also been rejected by the left-wing government of Socialist Prime Minister Pedro Sanchez on grounds it would destroy jobs and reduce competition in the sector.

Economy Minister Carlos Cuerpo has warned the government would “have the last word when it comes to authorising the operation”.

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