Cold shower for Iberdrola in the middle of August. The Ministry for the Ecological Transition has denied the environmental authorization for the Aceca solar megafarm in Toledo, mainly due to its impact on wildlife because of its proximity to an imperial eagle nest, a protected species. For Iberdrola, the decision not only knocks down a photovoltaic asset with enormous potential, but it is also a torpedo to the waterline of a 2 billion euro strategy to build large-scale data centers south of Madrid.
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Iberdrola began processing the park in December 2022, when it even applied for the declaration of public utility. The largest electricity company in the country wanted to take advantage of the electrical infrastructure of its Aceca combined cycle gas plant, in Villaseca de la Sagra, to deploy more than 700,000 solar panels around it with an installed capacity of 347.51 megawatts (MW). But, following the boom in artificial intelligence, the project had gained new strategic weight for the company, which has big plans to lead the development of data centers in the area of influence of the Spanish capital.
Prospects for the photovoltaic generation business have turned around since 2022. Today, the increase in hours at zero or negative prices in the electricity market and growing production restrictions due to grid limitations are disrupting promoters’ business plans. But, in recent years, generators have also opened a window: data centers.
These new players are true electricity devourers and have set their sights on Spain. They need a huge volume of energy, preferably clean, 24 hours a day… and are willing to pay a good price for it. In Iberdrola’s case, the energy company itself has fully entered the data center business, with the border between Madrid and Castilla-La Mancha as a priority area.
Last year, Iberdrola signed a binding agreement with the Irish data center developer Echelon to mobilize around 2 billion euros, through a joint venture, to develop this type of asset in Spain. Iberdrola, owning 20% of that subsidiary, was tasked with identifying and securing land with grid connection, as well as supplying energy to future processing centers.
Both partners set a starting point: “Madrid South.” As they announced at the time, the alliance’s first project would be a 160,000 square meter complex with 144 MW for data processing, with an already secured 230 MW electrical connection. The multinational indicated that the electricity demand of that data center would be covered by “a photovoltaic solar plant to be built on site“, complemented with extra capacity from the Spanish energy company.
According to CincoDías, the idea was to locate that first data center near the Aceca combined cycle plant, almost on the border between Toledo and Madrid territory. Precisely, the place where Iberdrola planned to build the solar megafarm that the Government has just stopped.
The Ecological Transition resolution puts a spoke in the wheel of Iberdrola and its Irish partner’s plan. The ministry led by Sara Aagesen argues certain impacts on wildlife, including that the western sector of the plant was projected just meters from an active Iberian imperial eagle nest, which made the installation “critical and incompatible” with the conservation of an endangered species. Furthermore, it considers that Iberdrola made an “inadequate and insufficient” assessment of alternative locations, prioritizing “technical or economic variables unrelated to wildlife.”
STARTING POINT
After four years of bureaucratic journey, the Ministry has returned the project to the starting point. Largely because, by not obtaining administrative authorizations within the timeframe set by law, Iberdrola’s photovoltaic access and connection permit has expired, as Red Eléctrica informed at the end of June.
Iberdrola, which has not commented in response to EL MUNDO’s questions, has already expressed through administrative channels its “total disagreement” with the resolution. The electricity company argues that the Government “has not taken into account the reports issued by the environmental body of the autonomous community.” Additionally, it has warned that it is willing to take appropriate actions to defend its interests.
