Renewables growth cut Spain's electricity bills by 24.2% over the past two years
The expansion of renewable energy has significantly reduced electricity prices in Spain, lowering bills by 24.2% between 2023 and 2025. Renewables have weakened the link between gas prices and electricity costs, especially in countries like Spain and Portugal. The report highlights that while progress has been made, gas still influences European electricity markets despite growing renewable penetration.
- ▪Renewable energy expansion reduced wholesale electricity prices by an average of 24.2% across analyzed countries between 2023 and 2025.
- ▪Spain and Portugal are now 53% less exposed to gas price fluctuations than they were three years ago.
- ▪In Spain, the correlation between wholesale electricity prices and gas prices has weakened considerably by 2025 due to increased renewable generation.
- ▪Renewables lower electricity prices by displacing costly fossil fuel plants and, when generation is high, setting market prices due to their near-zero variable costs.
- ▪Spain is experiencing wider intraday price swings, creating economic incentives for investment in battery storage and other flexibility technologies.
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From pv magazine Spain The report Towards Cheaper Electricity, produced by Positive Money, examines how the energy transition is reshaping electricity prices across Europe, with a particular focus on the role of renewable energy in reducing dependence on gas and limiting exposure to volatile energy markets. According to the study, the European Union remains heavily reliant on imported fossil fuels, leaving it vulnerable to price shocks and geopolitical instability. Recent crises, including the fallout from the war in Ukraine and tensions in the Middle East, have exposed this weakness, driving sharp increases in gas and electricity prices while also fueling inflation and undermining industrial competitiveness.
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Excerpt limited to ~120 words for fair-use compliance. The full article is at pv magazine International.
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