IEA highlights Spain’s renewables-driven gas savings

Spain’s rapid deployment of renewable energy has delivered sizeable savings on gas imports and bolstered energy security, according to a new review by the International Energy Agency (IEA). The IEA estimates that, without the strong increase in renewable generation capacity, Spain’s natural gas imports for power generation would have been nearly 40% higher in 2024, at an additional cost of about 26,000 million dollars. The growth of wind and solar power has reduced exposure to fossil fuel price swings and helped to lower wholesale electricity prices, improving the country’s energy competitiveness.

These savings come alongside a significant structural change in the power mix. Between 2015 and 2025, the share of renewables in Spain’s electricity generation rose from 35% to 56%. Over the same period, greenhouse gas emissions fell by roughly a fifth, reflecting the combined effect of higher clean generation and supporting policy frameworks.

The IEA concludes that Spain has achieved impressive progress in transforming its energy system, with clean energy deployment contributing to energy security, competitiveness and social inclusion. However, the agency notes that overall dependence on imported energy remains high. In 2024, energy imports still accounted for around 70% of Spain’s total energy consumption, underlining that gains in the power sector have not yet been fully replicated across the wider economy.

The expansion of renewable capacity has already helped contain wholesale electricity prices and reduce reliance on imported gas. Nonetheless, the IEA finds that these macroeconomic benefits have not been fully reflected in final electricity bills. Taxes, levies and network charges keep electricity prices for end users relatively elevated, while fossil fuels bear comparatively lower cost burdens, which can weaken incentives to switch consumption from fossil fuels to electricity.

The report stresses that accelerating electrification of end uses is essential for Spain to meet its energy and climate objectives. Electricity currently accounts for around 25% of the country’s final energy consumption, below a national target of 35% by 2030. The IEA argues that increasing the electrification of transport, buildings and industry would further cut dependence on imported fuels and unlock more of the benefits created by Spain’s renewables leadership.

To support this shift, the IEA calls for modernising and optimising power grids, and for developing storage and demand-side flexibility so the system can accommodate higher shares of variable renewable generation. It also highlights the need for integrated infrastructure planning across electricity, natural gas, hydrogen and other renewable gases, and for careful management of Spain’s nuclear phase-out to maintain security of supply.

The IEA views Spain’s experience as evidence that rapid clean energy deployment can advance energy security, economic competitiveness and social outcomes at the same time. Looking ahead, the agency identifies the next challenge as turning today’s renewable capacity gains into a fully integrated, flexible and resilient energy system. A rebalancing of energy price signals, while protecting vulnerable consumers, is seen as important to encourage households and businesses to electrify their energy use.

By accelerating electrification, reinforcing grids, expanding storage and flexibility, and managing nuclear plant closures prudently, Spain could deepen the impact of its renewables boom across the whole economy. The IEA notes that such a transformation would position the country to provide useful lessons for others pursuing similar large-scale energy transitions.