Spain has pursued a strategic expansion of renewable energy since before the gas crisis of 2021-2024, and reinforced this approach following the Iberian blackout of April 2025. This strategy is proving its worth as Spanish consumers continue to benefit from low-cost electricity despite elevated gas prices. Building on this, Spain’s response to the 2026 energy crisis recognises the importance of electrification to drive deeper reductions in fossil import dependency.

Key findings from the report “Renewables shield Spanish consumers from elevated gas prices” published by EMBER are:

  • 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 (or 19%) more per month in electricity bills due to elevated gas prices since March 2026.
  • Renewables growth has sustained momentum since the Iberian blackout of April 2025, and battery storage in Spain is rapidly rising. This surge in storage, plus other grid resilience measures enacted since the blackout of April 2025, should expedite the end of the costly ‘reinforced mode’ of grid operation. 
  • Spain’s energy crisis response targets a boost in electrification, reducing fossil import dependency beyond the electricity sector. Temporary cuts to electricity taxes removed €8 from the typical monthly electricity bill. This, combined with low (and shielded) electricity market costs, caused regulated consumer prices to fall significantly in April 2026, to among their lowest levels since before the gas crisis of 2021-2024. 

Access the report here