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Spain's Economy

Spain's Renewable Energy Boom

How Spain became a leader in solar and wind power, lowering electricity prices, and what the April 2025 Iberian blackout revealed about grid stability.

Spain is a renewable energy leader.

Solar and wind

Sunny plains and wind make Spain one of Europe’s top producers of solar and wind power.

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Renewables supply around half or more of Spain’s electricity.

Cheaper power

Cheap renewables have lowered electricity prices, attracting industry and data centres.

Iberian exception

In 2022, Spain and Portugal capped gas prices for power generation.

April 2025 blackout

On 28 April 2025, a massive blackout hit Spain and Portugal, sparking debate over grid stability with high renewables.

Solar subsidies

Earlier, retroactive cuts to solar subsidies in the 2010s led to international arbitration cases.

The midday price

On sunny spring days, Spanish power prices fall close to zero at midday.

Thinking renewables always raise power prices

Spain's are among Europe's cheapest.

Key takeaways
  • Spain leads in solar and wind.
  • Renewables supply about half its power.
  • Cheap power attracts industry.
  • The 2025 blackout raised grid questions.
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