THE cost of electricity in Spain has fallen to its lowest level in 17 years due to a boost in renewable energy production.

Just in 2020, the price dropped by 28.8%, with wind-generated power preventing a rise in household bills due to escalating gas rates, according to a report by energy consultants Grupo ASE.

A wind farm in Spain
A wind farm in Spain

Analysts reveal that the cost of electricity production in Spain is among the lowest in the European Union thanks to the key role played by renewable sources.

Spanish electricity is currently one of the most competitively priced in Europe, as prices have increased in the UK, France, Germany and Italy.

This tendency is expected to continue over the coming years, in keeping with an agreement between the Spanish government and the EU for 74% of the country’s electricity to generate from clean energy by the year 2030.

According to Grupo ASE, wind power accounted for 32.6% of electricity generation in Spain in December, followed by nuclear (23.3%), hydraulic (14%), gas (11.5%), solar (3.1%) and others.

In addition, and as with everything last year, the coronavirus has also played a vital role in the downwards trend of electricity prices, with a drop in demand of over 5% due to the lockdown and the ensuing economic crisis.

Experts suggest that Spanish society is also increasingly energy-efficient, as part of a general consciousness regarding the environment that has also led to an increase in recycling and a reduction in reliance on single-use plastics.

December has reportedly been a very volatile month for energy prices, as a series of events have altered the markets including Brexit and a nuclear power plant strike in France, plus the commitment reached by the EU to cut CO2 emissions by 55% before 2030.  

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