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

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.