Before the blackout of April 28, Spain reached a \u00a0remarkable milestone\u00a0 in solar energy production, operating at 100% renewable power. Following this setback, the nation has revived its energy sector, generating over \u00a010,500 GWh\u00a0 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\u2019t electricity become more affordable?<\/p>\n
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According to provisional data from the Red El\u00e9ctrica de Espa\u00f1a (REE), as highlighted by energy analyst \u00a0Pedro Catuel\u00a0, Spain achieved an astonishing output of over \u00a010,500 GWh\u00a0 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.<\/p>\n
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Yet, paradoxically, as \u00a0sunshine and wind\u00a0 fill the energy grid, electricity prices have surged. In mid-July, the average electricity cost hit \u00a0\u20ac164.06\/MWh\u00a0, according to figures from REE cited by \u00a0Xataka\u00a0. Although there was a momentary drop to \u00a0\u20ac102.85\/MWh\u00a0 for just one hour, that affordability is a fleeting illusion. The underlying paradox remains: why, amidst abundant renewable resources, are prices not decreasing?<\/p>\n
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The answer lies in a mix of technical, structural, and political factors. \u00a0During peak solar hours\u00a0, particularly around noon when energy generation is at its zenith, there\u2019s often an \u00a0oversupply\u00a0 of energy leading to a price collapse. But as the sun sets and demand persists, the system relies on backup energy sources, and currently, \u00a0natural gas\u00a0 becomes essential. This shift skyrockets costs, making it clear that increased renewable generation doesn\u2019t directly correlate with lower prices for consumers.<\/p>\n
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In addition to reliance on gas, there exists a significant challenge: \u00a0energy storage\u00a0. A considerable portion of renewable energy produced cannot be effectively saved or transferred, resulting in substantial loss. According to Red El\u00e9ctrica, up to \u00a030% of renewable generation\u00a0 is wasted due to infrastructure overload at certain points in the grid.<\/p>\n
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Compounding these issues, the return of the full \u00a021% VAT\u00a0 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 \u00a0Nordy\u00a0 energy marketing firm.<\/p>\n
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However, there is a silver lining. Since \u00a0July 15\u00a0, Spain has operated without generating electricity from coal\u2014a historic first in over \u00a0140 years\u00a0. The last remaining thermal plants, such as those in Bo\u00f1o, Soto de Ribera, and Los Barrios, have ceased operations, leaving only a single plant in Alcudia available as a backup.<\/p>\n
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So, will electricity prices eventually decrease? While the intent is clear, political realities complicate implementation. The \u00a0Royal Decree-Law 7\/2025\u00a0, which aimed to introduce pivotal measures to avert future blackouts and strengthen the electrical network, was rejected in Congress on \u00a0July 22\u00a0 by a vote of \u00a0183 against\u00a0. This decree included incentives for self-consumption, better regulation of the electricity market, and initiatives to advance energy storage.<\/p>\n
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The absence of such legal frameworks leaves the Spanish electrical system vulnerable and rigid. There\u2019s evident \u00a0network saturation\u00a0: only \u00a01 in 10\u00a0 new projects currently gain access to the grid, despite available technical capacity. In the medium term, the government aims to launch \u00a0capacity auctions\u00a0 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.<\/p>\n
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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.<\/p>\n
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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\u2019s clear that resolving this issue is essential for a sustainable energy future in Spain.<\/p>\n
Image Credits: HPGRESEN \/ Source: [Pixnio](https:\/\/pixnio.com\/es\/diverso\/energia-solar-solar-panel-viento-energia-cielo-campo-viento-sol)<\/p>\n