Key facts
- Spain's electricity bills have decreased due to a significant increase in renewable energy sources.
- Renewables have reduced the influence of fossil fuels on electricity prices by 75% since 2019.
- Gas now influences Spanish power pricing in only 9% of hours, down from 52% in 2021.
- Wind and solar energy capacity grew by 37% between 2021 and 2025.
- Spain doubled its wind and solar capacity since 2019, adding over 40 GW.
- Temporary tax cuts in Spain provided consumer relief and encouraged electrification.
Spain's commitment to clean energy has led to lower electricity bills for homes and businesses, even amidst a global energy crisis. Analysis from the think tank Ember indicates that renewables have significantly reduced the influence of fossil fuels, particularly gas, on electricity prices. Since 2019, the impact of fossil fuels on Spain's electricity price has dropped by 75%, with gas influencing pricing in only 9% of hours since early 2026, a substantial decrease from 52% in 2021. This shift is largely attributed to a 37% boom in wind and solar energy capacity between 2021 and 2025. Chris Rosslowe, the report's author, stated that this growth acts as a shield against global price instability. Spain has rapidly transitioned away from coal, doubling its wind and solar capacity since 2019 and eliminating coal-fired power generation by August 2025. This contrasts with the broader EU, which has seen increased fossil fuel imports and a significant energy bill since the Iran war. Alice Moscovici of the Jacques Delors Institute noted that the EU has invested minimally in electrification measures despite the rising costs. While fossil fuel companies have seen increased profits, Spain has implemented temporary tax cuts to alleviate consumer burdens and encourage electrification. Despite a major power cut in April 2025, Spain continued to expand its renewable capacity, and measures to improve grid stability, such as facilitating battery storage, are expected to further reduce gas's influence on prices.