In planning an emergency action plan, recent data show that Spain faced a surge in gas consumption for electricity generation as drought intensified and domestic demand tightened. In the first seven months of 2022, gas use to produce electricity rose by 83.2% year over year to 72.9 terawatt hours (TWh), according to Enagás data. Meanwhile, conventional demand, which includes industry, households, and small-to-medium enterprises, declined by about 13% to a total of 150,837 TWh.
Electricity production in Spain has traditionally relied on hydropower, which accounts for roughly 12% of the national mix. However, persistent drought this year kept hydropower well below the 2017 average, curbing water-based generation. As a consequence, Spain has increasingly exported electricity to France, reversing the usual flow in recent years, as Red Eléctrica data indicates.
Two main reasons drive the rise in gas-fired generation for export: maintenance work on several French nuclear plants and the Iberian Peninsula’s gas price cap, which influences gas flows from south to north. This situation is amplifying electricity demand and gas production when other technologies, such as coal, are not available. The recent heat wave has also boosted air-conditioning use, further lifting electricity demand.
Against this backdrop, Spain reached an agreement with Brussels to curb electricity consumption by 7% from August 1, 2022, through March 31, 2023, using the average consumption of the previous five years as a baseline. Projections published by Enagás indicate that average gas consumption in the eight months since 2017 stood at 261.32 TWh, with around 20% attributed to SMEs and domestic demand, 54% to industry, and 24% to electricity generation. Based on these figures, Spain anticipated an 18.3 TWh reduction in consumption over the following eight months.
The central question became how to achieve this reduction. On Monday, government authorities announced a campaign to lower energy use in public buildings by adjusting indoor temperatures, turning off lights at night, sealing doors in air-conditioned spaces, and reviewing boiler efficiency. While the specifics of the potential impact remain uncertain, it is clear that SMEs and households have already cut their gas use, with reductions of around 4% in the latest six months and 13.8% in total for the period referenced.
Industry showed a sharp response as well, posting a 20.2% decline in June and an 11.8% drop since January. Some analysts forecast a further 30% reduction in July, with August following a similar path due to sustained high energy prices. Verónica Rivero, spokesperson for a major industrial gas association, noted that mandatory curbs are not part of the current talks with the Ministry. Instead, emphasis is placed on efficiency measures and the adoption of renewable alternatives such as biogas or biomethane, green hydrogen, and voluntary reductions where feasible.
With electricity generation largely dependent on available gas, the remaining option appears to be managing gas use with export policies in mind. Rivière explained that exports to France are currently exempt from certain adjustments, provided Spain optimizes gas consumption without triggering penalties that would require reducing gas supply to France. This approach places responsibility in the hands of the Ministry and European authorities, as a halt in gas exports could be contemplated if necessary. Theresa Rivera, a deputy minister overseeing ecological transition, stated that it is not advisable to log separate gas consumption for third-country use, though no concrete contingency plan has been finalized. A formal design of such measures is expected to be submitted to the European Commission before the end of September.
In summary, Spain faced a complex balancing act: lowering internal energy demand while maintaining enough gas-for-power capacity to avoid destabilizing exports. The evolving situation underscores how drought, cross-border energy ties, and policy coordination with Brussels shape Spain’s energy strategy in the near term. This dynamic has implications for consumers, industries, and policymakers across both Spain and its neighbors, illustrating the delicate trade-offs involved in secure energy provisioning in a drought-impacted, market-driven environment.