Spain's government has unveiled a €17 billion plan to expand its electricity grid, adding 47.3 gigawatts of connection capacity by 2030 to unblock stalled housing and industrial projects.
The revised proposal, announced on Sunday, increases the original 27.7 GW plan from September 2025 by nearly 20 GW and raises the required investment by €3.4 billion. The number of connection points will rise 52 percent to 300. The shortage of connections has become an obstacle for the housing market, with new developments, factories and investment projects competing for space on an overstretched network.
Madrid receives the largest allocation at 6.5 GW, followed by Aragón with 6 GW and Andalucía with 5 GW. Castilla-La Mancha will get 4.1 GW and the Comunitat Valenciana 3.8 GW. La Rioja and the Balearic Islands will not receive additional demand capacity, though their networks will still see transmission improvements. Madrid pressed for capacity to supply housing in the north and south of the region and planned data centres.
The ministry said 70 percent of the new demand relates to industrial projects, with the remainder covering housing, port decarbonisation and railway electrification. Housing is prioritised in eight regions including Madrid, Andalucía and Catalonia, while data centres are planned for Aragón and Madrid. Green hydrogen production is a priority in six regions including Andalucía and Galicia.
In Andalucía alone, the plan includes 19 new substation sites, 1,283 kilometres of new power lines and upgrades to 651 kilometres of existing lines. Regional governments had warned that insufficient grid access was holding back construction and economic development. Without an available connection, projects can struggle to progress even when land and planning permissions are in place.
Spain's housing market faces pressure from rising prices and legal uncertainty that has driven institutional investors away. The economy grew 0.6 percent in the third quarter, while unemployment stood at 10.3 percent in September.
