Nobody Expected The Spanish (Energy) Transition! Spain has dramatically increased its use of wind and solar power over the past decade, leading to some of the lowest wholesale electricity prices in Europe. This transition involved phasing out coal and significantly reducing reliance on gas, with renewables now making up 42% of the energy mix. While these changes have lowered wholesale prices, household costs remain above the EU average, and grid modernization is needed to fully leverage renewable energy benefits.

• Spain’s wholesale electricity prices are among the lowest in Europe, averaging €44 per megawatt-hour in early 2026.
• The country has transitioned from a third coal power 25 years ago to virtually zero, replacing it with gas and now renewables.
• Wind and solar power combined account for 42% of Spain’s energy mix in 2026, with gas at 19% and nuclear at 19%.
• The increase in renewables, especially during daylight hours, has lowered wholesale prices by displacing expensive gas-fired power plants.
• Despite lower wholesale prices, household electricity costs in Spain are still above the EU average.
• A 2025 blackout in Spain and Portugal was attributed to voltage management issues, not an over-reliance on renewables.
• In contrast, the US faces significant delays in wind energy projects due to Pentagon reviews, impacting jobs and investment.