Spain has entered a historic era for electricity, driven by a rapid expansion of new renewable plants. Last year, the Spanish power system achieved a milestone: renewables generated more than half of the nation’s total electricity for the first time, surpassing nuclear, gas, and coal plants that barely kept up. The renewable boom is accelerating and breaking records once thought unattainable.
Renewable plants in Spain produced 14,591 gigawatt-hours (GWh) in March, setting a new high and boosting green generation by 16 percent from the previous year. For March, renewables accounted for a record 65.2 percent of all electricity generated in the country, marking five consecutive months where renewables provided more than half of the total. This data comes from Red Eléctrica de España (REE), the operator responsible for managing Spain’s national electricity system.
With a generation mix leaning increasingly toward green sources, greenhouse-gas emission free production — which includes nuclear energy in its accounting — reached a historical high in March, representing 82.2 percent of total electricity produced in Spain during the month.
Wind power is front and center. Wind farms again stood as the leading source of electricity, contributing 27 percent of total electricity in March, amounting to 6,061 GWh. Hydro plants rose sharply in response to recent rainfall, making hydropower the second-largest source with 22 percent of total electricity. Nuclear plants followed at 15.6 percent, while solar photovoltaic sources accounted for 13.6 percent. These figures come as some reactors faced maintenance outages.
Looking back over the past year, wind energy led the Spanish electricity sector in 2023, with wind parks becoming the largest source of electricity in the Spanish market, surpassing nuclear and natural-gas plants that led the year before. Wind energy has claimed the top spot for a decade, after first leading generation in 2013, briefly losing that lead during the 2021 crisis, and then reclaiming it last year.
Market prices for electricity have fallen dramatically as renewables gain share in the mix. Prices spiked during the peak of the energy crisis, sometimes exceeding 500 euros per megawatt-hour (MWh). By March, with renewables providing more than 65 percent of total production, the average market price dropped to 20.27 euros per MWh — the lowest monthly average in roughly a decade, the lowest since early 2014. The Spanish market operates on a marginal pricing mechanism, where the most expensive technology needed to meet demand sets the price for all generations. Inframarginal technologies like renewables and nuclear often enter the market at near-zero prices. When enough green and nuclear capacity is available to cover consumption, prices can dip to zero and even turn negative on certain hours. Through the year to date, there have been more than 150 hours with prices at zero or negative levels, reflecting this dynamic.
As renewable output grows, it becomes easier to stabilize energy prices. This trend has been reinforced by reductions in natural gas prices and lower CO2 rights costs. In March, renewables dominated with more than 65 percent of national electricity production, helping the market average price fall to 20.27 euros per MWh — the cheapest monthly average in about ten years.
Citations: REE data indicate the ongoing shift toward a greener and lower-cost electricity system in Spain, driven by sustained renewable growth and favorable market conditions.