This paper describes the outlook and development of renewable energy in Navarre (Spain), which has become one of the leading regions in renewables over the last 10 years. This paper focuses its attention on the key features of the energy policy in Navarre, where there has emerged a dynamic enterprise sector. This sector has enormously increased its employment rates in the region. The success of renewable energy in Navarre is the result of the joint impact of decisive institutional support, industrial initiatives and consensus among social agents with regard to renewables. Tax incentives and local investment programs designed to break down the reluctance of local authorities and a campaign to obtain public support have, moreover, proven more efficient than the prior feed-in tariffs scheme, designed to develop the renewable energy sector and create international companies within it. The paper culminates in a detailed prognosis based on the SRN2003 survey of employment and installed power, which covers the majority of the firms operating in the Navarre renewables sector. Findings, however, suggest that the future of the sector in Navarre could be held back by the shortage of trained workers. This article might serve as a pertinent example for the deployment of renewables at regional level worldwide. (c) 2005 Elsevier Ltd. All rights reserved.