SPAIN has managed to shield its consumers from soaring electricity costs despite global energy turmoil, thanks to a rapid expansion of solar, wind, and hydro power.

Gas now sets the price of electricity in Spain for just 15% of hours this year, compared with 89% in Italy, showing how renewables are reshaping the market and giving Spain a unique advantage.

Wind and solar alone supplied nearly half of Spain’s electricity demand in the first half of 2025, up from 27% in 2019, while coal-fired generation has all but disappeared from the grid.

Spain still relies on nuclear power for a stable base, which generated around 20% of electricity last year, roughly double the UK’s share, providing consistency alongside 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.

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Where other countries continue to grapple with sustained price spikes, Spain’s rapid expansion of solar, wind, and hydro has limited the impact of fossil fuels 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.

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Recent policy reforms following blackouts have strengthened the role of clean energy and flexibility solutions, allowing renewables to contribute to grid stability and reduce dependence on fossil fuels.

Experts say Spain’s success offers a blueprint for the rest of Europe: rapid renewable expansion, smart grid investment, and clean flexibility can lower electricity costs while making nations more resilient to energy shocks.

By combining fast-growing solar and wind capacity with nuclear and hydro, Spain has shown that it is possible to decouple electricity prices from gas, keeping bills lower and energy policy more independent.

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The country’s experience demonstrates how strategic investment in renewables can make a nation both greener and better insulated against global energy crises, setting a standard for Europe to follow.

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