Spain’s rapid shift towards renewable electricity has delivered major financial benefits, reduced dependence on imported natural gas, and strengthened energy security, according to a new International Energy Agency assessment.

Spain has achieved significant economic savings through its growing investment in renewable energy, avoiding approximately $26 billion in natural gas import costs between 2011 and 2024. The International Energy Agency (IEA) says the country’s expansion of solar and wind power has helped reduce its exposure to international fuel markets while supporting a cleaner electricity system.

The findings, published in the IEA’s latest energy policy review on November 5, 2026, highlight how renewable energy is becoming an important part of Spain’s economic and energy strategy.

Renewable Energy Reduces Dependence on Imported Gas

Spain has substantially expanded its ability to generate electricity from renewable sources over the past decade. According to the IEA, renewable electricity capacity more than doubled, reaching approximately 119 gigawatts.

The expansion of solar panels and wind turbines has reduced the amount of natural gas required for electricity production. The agency estimates that without the growth in renewable capacity, Spain’s natural gas imports for power generation would have been nearly 40% higher in 2024.

This reduction has helped protect the country from fluctuations in international gas prices and unexpected disruptions in global energy supplies.

By producing more electricity domestically through renewable sources, Spain has also reduced its exposure to the financial risks associated with importing fossil fuels.

Solar and Wind Power Support Lower Electricity Prices

The expansion of renewable electricity has contributed to lower wholesale electricity prices in Spain, according to the IEA assessment.

Solar and wind installations provide electricity without requiring continuous purchases of natural gas or other fossil fuels. Their growing contribution can therefore reduce the influence of expensive imported fuels on electricity markets.

However, the benefits are not automatically reflected in every household or business electricity bill. Taxes, network charges, and other costs continue to influence the final prices paid by consumers.

The IEA believes Spain needs to review its energy taxation system so that the economic advantages of renewable electricity can reach more households and businesses.

Emissions Decline as Clean Electricity Expands

Spain’s renewable energy expansion has also delivered environmental benefits.

Between 2015 and 2025, the share of renewable sources in the country’s electricity generation increased from 35% to 56%. During the same period, greenhouse gas emissions declined by approximately 20%, according to the agency.

These developments demonstrate the growing contribution of renewable electricity to Spain’s climate objectives.

Nevertheless, the IEA points out that the country’s energy transition is not yet complete. Imported fuels continued to account for almost 70% of Spain’s total energy consumption in 2024.

This means further changes are needed beyond electricity generation, particularly in transportation, heating, buildings, and industrial activities.

IEA Calls for Faster Electrification

The agency has identified wider electrification as one of Spain’s most important energy priorities.

Electric vehicles, modern heating systems, and electrically powered industrial equipment could help replace technologies that currently depend on oil and natural gas.

Electricity represents only around 25% of Spain’s final energy consumption, while the country has established a target of increasing that proportion to 35% by 2030.

The IEA suggests that better incentives and a more balanced tax structure could encourage households and companies to switch towards electric alternatives.

Such changes could also help businesses benefit from the country’s expanding renewable electricity supply.

Stronger Electricity Networks and Energy Storage Needed

The growing use of solar and wind power creates new requirements for electricity infrastructure.

Solar generation can vary throughout the day, while wind production depends on weather conditions. As renewable capacity increases, Spain will need more effective systems to balance electricity supply and demand.

The IEA recommends continued investment in electricity networks, battery storage, and demand-side flexibility.

Energy storage can help retain surplus electricity when production is high and make it available when renewable generation falls.

The agency also supports a more balanced combination of solar, wind, and hybrid renewable technologies to improve the reliability of the electricity system.

Nuclear Energy Remains Part of the Policy Debate

Spain’s planned nuclear power phase-out is another important issue highlighted in the IEA review.

The agency recommends a transparent approach to decisions about the future operation of individual nuclear plants, taking account of safety requirements, electricity costs, and the security of supply.

Following the approval of an extension to the operating life of the Almaraz nuclear power plant, the IEA has called for future decisions to be assessed individually rather than through a single general approach.

The debate reflects the challenge of maintaining a reliable electricity supply while increasing the contribution of renewable sources.

Spain’s Renewable Energy Strategy Offers Lessons for Other Countries

Spain’s experience demonstrates how investments in domestic renewable electricity can reduce exposure to international fossil fuel markets.

The estimated $26 billion in avoided gas import costs highlights the potential economic value of expanding solar and wind generation.

However, the next stage will require more than installing additional renewable capacity. Electricity networks, storage facilities, transport systems, industrial technologies, and consumer pricing structures will all influence how successfully the country can use its clean energy resources.

The IEA’s assessment suggests that Spain has made substantial progress in transforming electricity production, but extending those benefits throughout the wider economy remains a major challenge.

As countries worldwide look for ways to improve energy security and reduce fossil fuel dependence, Spain’s experience provides an important example of the economic opportunities associated with the renewable energy transition.