In Spain’s north-east, Navarre, centred on the city of Pamplona, might not be the largest producer of renewable energy, but it has been instrumental in the development of the sector. In sitting down to meet with Regional Minister for Economic and Business Development, Mikel Irujo Amezaga, he asserts that whilst the Danes pioneered wind energy, and the Germans developed the technology, the Spanish were the first to successfully commercialise and scale it.
For Navarre, he attributes their success to a number of factors, including the region’s willingness to place a bet on the future of the renewable energy sector, at a time when the sector was still in its formative stages. This leadership and risk appetite has been reflected in the various mechanisms the Government of Navarre has deployed to build a renewable energy ‘ecosystem’. This has included a range of local tax deductions, a willingness for government to invest capital in early-stage companies and the encouragement of industrial symbiosis and clustering through projects like Ciudad de la Innovación (Innovation City) industry park in Sarriguren, which is home to numerous significant renewable energy companies and research facilities.
This includes the National Renewable Energy Centre (CENER), whose applied research has also helped to support the sector’s growth and development in Navarre and beyond. CENER’s Director General, Pablo Ayesa Pascual, believes that the region has done a good job of engendering loyalty from industry. Whilst the region’s renewable resources, terrain and grid access was the “bait” which attracted them in the first place, building the region’s research and development (R&D) capability, investing in local joint ventures and working closely with industry has been instrumental in encouraging them to stay.
For CENER, the evolution of the energy sector is also guiding their focus. Whilst they operate a range of laboratories and test fields for wind and solar energy, they have also branched out into a biorefinery, microgrids, hydrogen, waste-to-energy and the role of digitalisation. Their funding, which comes from both government and industry, allows them to work on a range of projects that are trying to solve current industry challenges – as well as thinking about what future problems may arise, and the solutions that they may require.
The Government’s investment approach, through Sociedad de Desarrollo de Navarra (Sodena – the Navarre Development Society) has also been successful. Guillermo Alonso, Sodena’s Director of Investment, explains that his organisation provides both grants to industry, as well as a public venture fund that allows them to invest in companies aligned with the Government’s priority sectors (which includes renewable energy). One such example, Nabrawind, has been developing innovative solutions for the construction of wind turbines, and recently has seen a further investment from Fortescue in their technology.
Eneko Sanz, Nabrawind’s General Manager, explains that the investment from Sodena has been very helpful in helping the company grow and develop its technology – both in terms of the capital investment, but also Sodena’s role on their board. The investment is not forever though, as with all Sodena’s investments, there is a divestment clause which will allow the Government to withdraw and reinvest in another promising company.
Whilst the focus here has been less on the regional impacts, Navarre is a good example of how industry development can be done to drive the growth of a new sector. Perhaps appropriate for a city famous for the running of the bulls, it started with a bit of calculated risk-taking from Government to start trying to attract the sector, and this cultural approach has continued through into government venture capital opportunities.