Energy think tank Ember, which carried out the research, explained how gas is typically the most expensive source of electricity, and raises prices in any hour it is used for power.
In Spain, however, gas has only influenced prices in 9% of hours since the beginning of 2026 – down from 52% of hours in 2021 – mainly due to the growth of wind and solar generation, which grew by 37% from 2021 to 2025.
In more gas-dependent Italy, power prices averaged €143/MWh in March – three times higher than Spain’s €42/MWh.
Indeed, the EU’s wholesale gas prices have been elevated 60% since before the start of the US-Israel war with Iran, while Spanish wholesale prices have consistently been among Europe’s lowest.
If electricity prices were still linked to gas prices as strongly as in 2021, a typical Spanish household on the regulated tariff would be paying 19% more per month in electricity bills due to elevated gas prices since March, according to the analysis.
“Wind and solar growth are acting as a shield against the price impacts of global instability,” said Ember senior analyst Chris Rosslowe. “While gas prices spike, renewables are keeping power bills down for Spanish households and businesses.”
Following last year’s Iberian blackout, Spain maintained momentum on renewable installations, adding an average of 1.3 GW of wind and solar capacity per month between May 2025 and February 2026 – above the 1.2 GW average over the twelve months prior.
This was paired with a renewed effort on supportive policies for a renewables-based system. New regulation will allow renewables projects to provide grid stability services, while reforms have also streamlined the addition of battery storage, which is set to quadruple in 2026.
The government’s crisis response following the escalation of conflict in the Middle East aligned with this policy direction.
Temporary tax cuts between March and May 2026 removed €8 from the typical monthly domestic electricity bill, both providing consumer relief and acting as a lever to encourage electrification – the key to reducing Spain’s dependence on imported fossil fuels.
“Multiple crises pushed Spain to accelerate its energy transition, and that’s now paying off for consumers,” Rosslowe explained. “Electrification is the next, crucial step to improve security and protect the wider Spanish economy from future price shocks.”
Image credit: Shutterstock
Chris Seekings is the Deputy Editor of ISEP’s Transform magazine, which is published biomonthly for ISEP members. Chris’s role involves writing sustainability-related news, features and interviews, as well as helping to plan and manage the magazine’s other day-to-day activities.
