Overcapacity as a Barrier to Renewable Energy Deployment: The Spanish Case

Renewable energy sources (RES) play a critical role in the low-carbon energy transition. Although there is quite an abundant literature on the barriers to RES, the analysis of the electricity generation overcapacity as a barrier to further RES penetration has received scant attention. This paper tries to cover this gap. Its aim is to analyse the causes and consequences of overcapacity, with a special focus on the impact on RES deployment, using Spain as a case study. It also analyses the policies which may mitigate this problem in both the short and the longer terms.