The circular economy in Spain

Iberdrola España and its commitment to the circular economy for a more sustainable future

The transition towards a more sustainable energy model does not depend solely on the development of renewable energy. It also involves using resources more efficiently, extending the useful life of equipment and materials and reducing waste. In this context, the circular economy in Spain plays a significant role in moving towards a low-carbon future.

An aerial view of a forest with a road running through the natural landscape, illustrating the link between sustainability and mobility.

The circular economy promotes a model based on extending the useful life of resources through reuse, repair, sustainable design and recycling.

Key findings on the circular economy in Spain

 

  • The circular economy in Spain aims to maintain the value of products, materials and resources for as long as possible by promoting reuse, repair, eco-design and recycling.
  • Iberdrola España integrates circularity into its environmental strategy and value chain, with specific applications such as the repowering of wind farms, the second life of batteries and the recovery of materials from energy infrastructure.
  • The Spanish Circular Economy Strategy, "España Circular 2030", sets out targets such as reducing national material consumption relative to GDP by 30% compared with 2010 and cutting waste generation by 15%.
  • In the energy sector, the circular economy enables the incorporation of criteria relating to efficiency, reuse and the recovery of materials in areas such as renewable generation, electrical networks and energy storage.

At Iberdrola España we integrate the principles of the circular economy into our operations to make better use of resources and promote the reuse and recycling of materials. This approach also extends to infrastructure efficiency and our work with our value chain – two areas linked to our commitment to the energy transition and decarbonisation.

What is the circular economy in Spain and what is its relevance to the energy sector?

The circular economy is a model of production and consumption that seeks to maintain the value of products, materials and resources for as long as possible. To achieve this, it focuses on better product design, reducing the use of raw materials and encouraging repair and reuse. In this way, materials can be reintroduced into new production processes and waste generation is reduced.

 

In Spain, this model is being promoted through the Spanish Circular Economy Strategy, "España Circular 2030", which sets out targets such as reducing national material consumption relative to GDP by 30% compared to 2010, cutting waste generation by 15% and improving water use efficiency by 10%. Its implementation is carried out through successive action plans. In January 2026, the government approved the Second Circular Economy Action Plan, comprising 105 measures to move towards a more circular and decarbonised model.

 

In the energy sector, the circular economy can be applied to various areas of activity, ranging from renewable energy generation and electrical networks to energy storage and electrification solutions. In these areas, the challenge lies in managing equipment and materials more efficiently and finding new uses for components such as wind turbine blades, photovoltaic panels and batteries.

Iberdrola España's Circular Economy Strategy and Plan

At Iberdrola España, we view the circular economy as one of the pillars of our environmental strategy and our approach to creating sustainable value. Our Circular Economy Policy sets out the principles for improving the circularity of our operations and our value chain, in line with our business model and our sustainability commitments.

 

The policy applies these principles to various areas of the company's operations, including the supply chain, internal processes and customer solutions. This approach focuses on managing resources from a life-cycle perspective and incorporates eco-design criteria to promote greater use of materials and assets.

Iberdrola España's business model, based on a life-cycle analysis approach. It encompasses environmental performance, waste recovery, R&D&I, renewable electrification, efficiency and resource optimisation and the reduction of resource consumption. The model connects suppliers and customers through green procurement initiatives, eco-design, environmental product declarations, green energy and mobility, energy-efficient products and digitalisation.
Iberdrola España's business model, based on a life-cycle analysis approach. It encompasses environmental performance, waste recovery, R&D&I, renewable electrification, efficiency and resource optimisation and the reduction of resource consumption. The model connects suppliers and customers through green procurement initiatives, eco-design, environmental product declarations, green energy and mobility, energy-efficient products and digitalisation.
Iberdrola España's business model, based on a life-cycle analysis approach. It encompasses environmental performance, waste recovery, R&D&I, renewable electrification, efficiency and resource optimisation and the reduction of resource consumption. The model connects suppliers and customers through green procurement initiatives, eco-design, environmental product declarations, green energy and mobility, energy-efficient products and digitalisation.

Specific examples of the circular economy in Iberdrola España's projects

The circular economy in energy infrastructure is not limited to the management of materials once their useful life has ended. This approach can be incorporated right from the design stage and maintained throughout the operation, maintenance and subsequent modernisation or decommissioning of the facilities, with a view to extending the useful life of both the equipment and the resources used.


Repowering of wind farms

One example is the repowering of the Isabela and Molar de Molinar wind farms in Albacete, where Iberdrola España is replacing old wind turbines with more powerful and efficient units. The project involves the recycling of 417 blades, totalling more than 800 tonnes of material. Iberdrola awarded the management of this process to EnergyLoop with the aim of maximising their recovery and facilitating their use in subsequent industrial processes. The new wind turbines also enable energy production at the facilities to increase by around 30%.

Second-life batteries for electric buses

The project carried out in Madrid demonstrates another application of the circular economy: giving a second life to batteries from electric buses. In the Spanish capital, Iberdrola España is partnering with the Municipal Transport Company (EMT) and Irizar e-mobility on a project that gives electric bus batteries a second life. These batteries are used as storage systems to support the recharging of the fleet and contribute to more efficient energy management at operations centres.

Closure of coal plants

In Lada (Asturias) and Velilla (Palencia), the circular economy is also playing a part in the transformation of former thermal power station sites. The plans spearheaded by Iberdrola España include circular economy projects aimed at recycling and recovering waste from these facilities to transform it into new materials for the construction sector.

Challenges and next steps for promoting the circular economy in the energy sector

Spain still has room for improvement in terms of the circularity of its economy. According to the 5th Cotec Report on the Circular Economy, the rate of circular use of materials stood at 8.5% in 2023, below the European Union average of 12%.

 

In the energy sector, one of the main challenges will be to recover and reuse a growing volume of materials as renewable energy facilities reach the end of their useful life. To make progress in this area the industry must continue developing solutions that facilitate the recovery of these resources and incorporate circularity from the design stage of infrastructure in line with the priorities set out in the Second Circular Economy Action Plan.

 

For Iberdrola España, this scenario means continuing to integrate circularity into the transformation of the energy system and continuing to work with its value chain to make better use of resources. In this way, the circular economy contributes to progress towards a more efficient and decarbonised energy model.

Other sustainable initiatives of Iberdrola España