Spain has been sending more electricity abroad for months, a consequence of the ongoing energy crisis that has reshaped how power needs are met across nearby nations. Exports from the national grid climbed to new highs last August, surpassing all prior records since 1990 when international electricity exchanges began to be tracked in official data. Never before has there been a month with such a large outflow of electricity into neighboring markets in more than three decades.
In August, the Spanish system moved a total of 2,924 gigawatt hours to neighboring countries connected through interconnections with France, Portugal, Morocco, and Andorra. The period highlighted challenges in guaranteeing supply for some border markets, notably the French and Portuguese systems, which depend on stable cross-border flows.
During the same month, Spain imported only 126 GWh from its neighbors, a level that was unusual for that period. The export balance reached a record high of 2,798 GWh in August, according to data from Red Eléctrica de España, the operator of the national electricity system and manager of the high-voltage transmission network.
Interconnection reaches capacity limits
France relied on electricity imports from multiple connected countries, with August showing record activity as it bought 1,484 GWh from Spain. France’s net import balance also reached a historic 1,451 GWh in that month due to bilateral energy needs and plant outages elsewhere.
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REE data show that interconnections between Spain and France through the Pyrenees operated at near maximum capacity for 99.3 percent of August hours, sending electricity to the French market at full tilt.
Exports to Portugal also rose, meeting about a quarter of the Portuguese market’s electricity demand. Portugal, heavily reliant on hydroelectric generation, faced drought conditions and turned to imports from Spain to secure supply. Exports to Portugal reached 1,122 GWh in August, with a net balance of 1,044 GWh, though higher figures were recorded earlier in the year, including February’s record of 1,435 GWh (1,373 GWh net).
A savings plan in motion
Spain managed to curb electricity consumption by 1.2 percent in the previous month as part of a broader State austerity package. This included measures such as reducing activity windows after 10:00 pm, adjusting operating hours, and regulating thermostat use in public buildings and offices. These steps contributed to lower energy demand while markets absorbed higher export activity.
Government aims to drive Europe’s energy transition from the Iberian Peninsula
In recent months, Spanish power generators increased the use of gas-fired plants to compensate for reduced hydroelectric output caused by drought and a slower contribution from some renewables. The expansion of gas-fired generation helped meet rising demand in neighboring markets, particularly for France and Portugal, while drought conditions and nuclear outages elsewhere shaped the regional energy picture.
To meet extra demand, combined-cycle plants—gas-burning facilities—played a larger role. Officials have discussed options to account for this increased gas use in meeting regional needs during energy crises, though European authorities have yet to fully authorize any exceptions. The European Commission continues to evaluate how to balance urgent supply needs with long-term climate and market rules while the austerity measures remain under discussion at Brussels.
Iberian exception and cross-border price dynamics
The Iberian exemption, a mechanism that helps manage gas-fired generation costs by limiting the price impact on electricity, has affected pricing across the region. While French consumers benefit from lower prices in the Spanish market, they do not shoulder the same compensation paid to gas-powered plants in Spain and Portugal. Observers note that the exemption has shifted some cost burdens and contributed to higher exports to France in recent months.
Supporters of the exemption argue that it has delivered tangible savings for Spanish consumers since it began in mid-June, helping to moderate wholesale electricity prices and reduce related compensation costs for gas plants. Critics, however, point to the broader energy flow implications and the need for careful oversight to ensure neighbor-country needs are met without unintended effects on prices for households and businesses across the Iberian market.
As the Iberian mechanism continues to influence the energy landscape, the focus remains on how to balance export momentum with domestic affordability and regional reliability. The ongoing discussion centers on whether this approach can sustain a stable transition for Europe while supporting cross-border energy security in times of drought, outages, and shifting renewable generation patterns.