Spain's electricity bills drop as renewables offset energy‑crisis price shocks

An analysis shows Spanish households have saved about €10 per month on electricity bills since the Hormuz Strait was effectively closed in March, as the country’s rapid expansion of wind and solar power has insulated prices from global instability.

Renewable sources now account for 75 % of the price‑setting mix, reducing the influence of fossil fuels since 2019. Gas, traditionally the most expensive generation source, contributed to price formation in only 9 % of hours from early 2026, down from 52 % in 2021, according to the Ember think‑tank. This shift follows a 37 % rise in wind and solar capacity between 2021 and 2025, adding more than 40 GW and doubling Spain’s renewable capacity since 2019.

Spain stopped using coal‑fired power altogether in August 2025, and its wholesale electricity price of €42/MWh ranks among Europe’s lowest, far below Italy’s €143/MWh. While the EU’s fossil‑fuel imports have surged, costing the bloc roughly €60 billion since the Iran war began, only about €2 billion has been directed to electrification measures. Temporary tax cuts have further lowered the typical household bill by €8 per month.

Industry observers note that the increase in EU gas prices has boosted profits for fossil‑fuel companies, prompting calls for a windfall tax on the extra €81 million they earn daily.