Renewable energy: what impact does it have on the environment, the economy, and society?

The environmental impact of renewable energy is most evident in this emissions reduction associated with power generation. Renewables help shrink the carbon footprint and bring Spain closer to international climate targets. They also support an energy model that protects natural resources and encourages efficient use.

To address biodiversity near renewable plants, extensive field studies are conducted to ensure that the facilities are properly integrated into their surroundings and to promote native wildlife and vegetation.

For solar energy, selecting the right location and designing the plant correctly has been shown to increase biodiversity after several years of operation, especially in dryland agricultural areas.

Resource conservation and energy efficiency

• Land use. Solar and wind installations can coexist with agricultural or livestock activities. Spain is already developing Agrivoltaics projects, where crops grow beneath solar panels, optimising both land use and energy production.
• Lifecycle. Environmental impact also depends on the recycling of components. Solar panel and wind turbine components can be reused or recycled.

What is the social impact of renewable energy?

Job creation and local development

In 2023, the renewable energy sector employed 16.2 million people worldwide, an 18% increase from 2022.

The presence of wind or solar farms stimulates new economic opportunities: support industries, local hiring, infrastructure improvements, and increased municipal revenue.

Renewable energy also represents an opportunity to enhance and diversify tourism, aligning with the sustainability values many travellers now prioritise.

These opportunities help people continue living in their hometowns without having to move to larger cities for work.

Quality of life, health, and well-being

The World Health Organization (WHO) highlights that replacing fossil fuels with renewable energy reduces exposure to pollutants such as particulate matter and nitrogen oxides, which are major contributors to poor air quality.

This shift improves air quality and public health by reducing risks associated with air pollution.

A just energy transition seeks to ensure that the shift towards cleaner energy sources reduces emissions while delivering shared benefits such as local employment, well-being, and equitable opportunities for all communities.

How does renewable energy influence the economy?

Savings in the electricity system and on energy bills

The economic impact is substantial. In 2023, renewable energy generated €9.575 billion in net savings in the Spanish electricity system, according to APPA Renovables.

These savings come from replacing more expensive technologies in the wholesale market and reducing fossil fuel imports —worth €15.622 billion. Avoided emissions contributed another €5.586 billion in saved costs.

Renewable energy also helps lower electricity prices in the wholesale market, which reduces consumers' bills and improves industrial competitiveness by providing more stable and sustainable energy prices.

How do renewable energies boost industry and technology?

Strengthening national industry

Developing the renewable industrial value chain creates high-skilled jobs and reduces technological dependence. Domestic manufacturing of turbines, inverters, and batteries strengthens the productive structure, boosts competitiveness, and supports a more innovative energy model.

Projects like the Aldeavieja (Ávila) wind repowering, where 22 turbines were replaced with just 4 more powerful ones, demonstrate how upgrading facilities increases efficiency while reducing environmental impact.

National industry is also strengthened by involving local companies in the design, manufacturing, and maintenance of new equipment. This way, we generate qualified jobs and consolidate the renewable energy value chain in Spain.