Before the blackout of April 28, Spain reached a remarkable milestone in solar energy production, operating at 100% renewable power. Following this setback, the nation has revived its energy sector, generating over 10,500 GWh of electricity in July through solar and wind resources. However, despite this impressive increase in renewable energy output, there’s a pressing question to address: why hasn’t electricity become more affordable?
A Green Record That Doesn’t Reflect in Energy Bills
According to provisional data from the Red Eléctrica de España (REE), as highlighted by energy analyst Pedro Catuel , Spain achieved an astonishing output of over 10,500 GWh in July, thanks to solar and wind energy. The visual data shared by Catuel on social media clearly illustrates that Spain is producing more clean energy than ever before.
Yet, paradoxically, as sunshine and wind fill the energy grid, electricity prices have surged. In mid-July, the average electricity cost hit €164.06/MWh , according to figures from REE cited by Xataka . Although there was a momentary drop to €102.85/MWh for just one hour, that affordability is a fleeting illusion. The underlying paradox remains: why, amidst abundant renewable resources, are prices not decreasing?
Understanding the Price Paradox
The answer lies in a mix of technical, structural, and political factors. During peak solar hours , particularly around noon when energy generation is at its zenith, there’s often an oversupply of energy leading to a price collapse. But as the sun sets and demand persists, the system relies on backup energy sources, and currently, natural gas becomes essential. This shift skyrockets costs, making it clear that increased renewable generation doesn’t directly correlate with lower prices for consumers.
In addition to reliance on gas, there exists a significant challenge: energy storage . A considerable portion of renewable energy produced cannot be effectively saved or transferred, resulting in substantial loss. According to Red Eléctrica, up to 30% of renewable generation is wasted due to infrastructure overload at certain points in the grid.
Political Decisions Impacting Energy Costs
Compounding these issues, the return of the full 21% VAT on electricity in January, after temporarily reduced rates during the energy crisis, has further inflamed consumer bills. This increase, combined with a rise in international natural gas prices, has pushed up costs, as noted by the Nordy energy marketing firm.
However, there is a silver lining. Since July 15 , Spain has operated without generating electricity from coal—a historic first in over 140 years . The last remaining thermal plants, such as those in Boño, Soto de Ribera, and Los Barrios, have ceased operations, leaving only a single plant in Alcudia available as a backup.
Future Challenges and Legislative Hurdles
So, will electricity prices eventually decrease? While the intent is clear, political realities complicate implementation. The Royal Decree-Law 7/2025 , which aimed to introduce pivotal measures to avert future blackouts and strengthen the electrical network, was rejected in Congress on July 22 by a vote of 183 against . This decree included incentives for self-consumption, better regulation of the electricity market, and initiatives to advance energy storage.
The absence of such legal frameworks leaves the Spanish electrical system vulnerable and rigid. There’s evident network saturation : only 1 in 10 new projects currently gain access to the grid, despite available technical capacity. In the medium term, the government aims to launch capacity auctions before year-end to maintain gas plants as support until battery and other technologies can catch up. However, as industry leaders caution, achieving this will take time.
Long-Term Solutions for Spain’s Energy Future
The roadmap ahead is clear but challenging: enhancing energy storage, creating smart grids, decentralizing energy production, and managing demand are essential steps forward. The challenge lies not just in generating more renewable energy but in making it usable when it is most needed. This requires significant investment, robust infrastructure, and decisive political action.
Meanwhile, the energy paradox persists: while affordable energy is available during the day, the inability to utilize it at night results in continued high electricity bills. As consumer frustration grows, it’s clear that resolving this issue is essential for a sustainable energy future in Spain.
Image Credits: HPGRESEN / Source: [Pixnio](https://pixnio.com/es/diverso/energia-solar-solar-panel-viento-energia-cielo-campo-viento-sol)