Renewables Shield Spain from Rising Gas Prices: Report
Electricity market prices in Spain remain among Europe’s lowest despite elevated gas prices since March 2026. Strong growth of renewables in the Iberian power system has significantly weakened the link between gas and electricity prices since the gas crisis of 2021-2024. This has effectively shielded Spanish electricity prices from the gas price spike following the US-Israel war with Iran. Spanish billpayers are avoiding costs of €10 per month thanks to shielding of electricity prices. If electricity prices were still linked to gas prices as strongly as in 2021, a typical household on the regulated tariff would be paying €10 more per month in electricity bills due to elevated gas prices since March 2026.
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