Spain is a ‘role model in weathering Iranian oil shocks due to its speedy rollout of renewables’, according to the FT 

SPAIN’s consumers have been protected from rising electricity costs, despite the global energy crisis, due to a rapid increase in solar, wind and hydro power.

In Spain, the price of electricity is set by gas for only 15% of the hours in this year. This compares to 89% of the hours in Italy. It shows how renewables have reshaped the market, giving Spain an advantage.

In the first half 2025, wind and solar will provide nearly half the electricity needed in Spain. This is up from just 27% in 2019. Coal-fired power generation has almost disappeared from the grid.

Spain relies on the nuclear power as a stable source of energy. It generated about 20% of its electricity last year – roughly twice that in the UK – and provides consistency along with intermittent renewables.

Despite operating one of Europe’s largest gas fleets, Spain enjoys some of the continent’s lowest electricity prices, forecast at around €66 per megawatt hour for the rest of 2026.

READ MORE: EXPLAINER: What is ‘inertia’, how did renewable energy sources contribute to Spain’s nationwide blackout – and how did they get the power back?

Spain’s rapid growth of solar, hydro, and wind has reduced the impact fossil fuels have on electricity bills.

The growth of renewables has also cut fossil fuel imports, saving an estimated €13.5 billion in gas costs between 2020 and 2024, while avoiding the need for costly coal and gas generation.

READ MORE: Elon Musk claims ‘emptied Spain’ could generate enough solar power to supply all of Europe – but politics and investment are holding it back

Recent policy reforms after blackouts have strengthened clean energy and flexible solutions. This allows renewables to reduce dependency on fossil fuels and contribute to grid stability.

Experts believe that Spain’s experience can be a template for other countries in Europe. They say that rapid expansion of renewable energy, smart grid investment and clean flexibility will lower electricity prices while increasing the resilience of nations to energy shocks.

Spain has demonstrated that by combining solar, wind, and hydroelectric capacity, it is possible for electricity prices to be decoupled from gas. This allows bills to remain lower, and the energy policy to remain independent.

READ MORE: Gibraltar seals historic deal to build waste-to-energy plant that will boost the island’s self-sufficiency, and help it achieve its green energy goals.

The country’s example shows that strategic investment in renewables makes a nation more environmentally friendly and better protected against global energy crisis, setting an example for Europe.

Green News is available at The Olive Press. Click here to learn more.