Spain | Renewable energy deployment and employment dynamics in Spanish provinces

Summary

The study estimates the employment effects of utility-scale solar and wind installations in Spain using microdata and local projection methods. Results show significant job creation, varying by phase, plant size, education, and technology, with notable spillovers to economically linked provinces.

Key points

• Key points:
• Microdata and methodology: using quarterly microdata from the Spanish Labour Force Survey (EPA) and administrative data on plant-level renewable installations, a local projections framework à la Jordà (2005) is applied to estimate dynamic employment effects.
• Magnitude and composition of effects: solar and wind installations generate approximately 10.15 and 12.4 jobs per megawatt at peak, respectively. Wind-related jobs are more often classified as “green” (2.4/MW), while solar job creation is less concentrated in green occupations.
• Spillovers across regions: significant employment spillovers are identified: solar installations induce 2.8 extraprovincial jobs per MW, with one in renewable-intensive occupations; wind plants generate 1.5 extraprovincial jobs, one-third of which are green.
• Heterogeneity by phase, size, and education: employment effects are stronger in early deployment phases (2005-2014) and among small and medium-sized plants. Solar jobs tend to favor less-educated local workers, while wind benefits vocational and university-trained individuals, often extraprovincially.
• Forward-looking implications: from 2025–2030, Spain's renewable targets (71 additional GW) could generate ~889,000 jobs, including ~110,000 green-skilled positions. The employment potential is geographically uneven, with implications for local training and equitable energy transition design.

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