In recent years, Spain has undertaken a sweeping rollout of new renewable facilities, and the green transition is reshaping the country’s electricity production. The surge toward clean energy is pushing the system toward a historic milestone this year: for the first time, more than half of Spain’s electricity is expected to come from renewable technologies, surpassing combined output from nuclear, gas, and coal plants, according to national grid data.
Spain’s electricity sector has achieved a record production of almost 125,300 gigawatt hours (GWh) so far this year, exceeding every prior year. Renewable sources now account for about 50.2% of total electricity generation across the national grid, which includes the peninsula and autonomous regions such as the Canary Islands, the Balearic Islands, Ceuta, and Melilla, as reported by Red Eléctrica de España (REE).
Never before has the 50% renewable energy threshold been reached in a single year. The previous record stood at 46.7% in 2021. The Pedro Sánchez government aims to produce 80% of electricity from renewable sources by 2030, a target outlined in the updated National Integrated Energy and Climate Plan (PNIEC) submitted to the European Commission. By 2023, electricity from non-fossil sources has also been breaking records while emitting no CO2, reaching about 72% of the total as of recent figures.
just a few months
There have been months when renewable energy outpaced all other generation, driven by favorable wind, solar, and hydro conditions. Yet producing above every other technology for an entire year remained unmatched until now.
More than a decade ago, the first month when renewables exceeded output from nuclear, gas, and coal occurred in April 2013. Since then, renewables have logged a minority of months where they led, with only a subset of monthly records showing renewables at the top of the mix.
Looking ahead, Spain is on track to exceed the 50% mark for green electricity in 2023. The latest monthly data show a new historical high, with wind and solar providing strong support and hydro recovering after drought-related setbacks from the previous year, according to REE statistics.
Wind energy has become the leading source of electricity this year, contributing about 23.3% of generation. Nuclear remains around 20.2%, and gas-fired plants around 17.4%. Photovoltaic solar power accounts for roughly 12.4% of production, with self-consumption potentially adding a further ~2%. Hydroelectric generation stands at about 9% of total output.
More renewable energy, cheaper light
The growing presence of renewables in Spain’s market is not only an environmental win but also an economic one. A lighter dependence on fossil fuels helps stabilize prices after a period of record highs in the energy crisis, when prices spiked beyond 500 euros per megawatt hour (MWh). A shift toward cheaper gas and a stronger renewable mix has helped soften prices in recent months, providing relief to households and businesses alike.
The wholesale electricity market, or pool, sets prices using a marginal system where the most expensive technology needed to meet demand sets the price for all hours. Non-marginal technologies such as renewables, nuclear, and hydroelectric power can enter the market at zero price when they are available.
The rise of renewable generation generally makes it easier to control electricity prices. With lower gas costs and lower rights for CO2 emissions, the market saw an average price of about 62 euros per MWh in November, the lowest since early 2021, while renewables accounted for more than 60% of total generation.
However, industry observers caution about distortions caused by rapid price collapses. When non-marginal renewables meet all planned consumption, prices can fall to zero for extended periods. In the past year, there have been roughly 85 hours with zero revenue for electricity producers, reflecting this dynamic.
Renewable energy producers warn that price cannibalization could affect the profitability of current and future green projects, potentially slowing new investment as prices remain suppressed during periods of high renewable output. This tension between rapid decarbonization and market incentives remains a key topic for policymakers and industry alike, as noted by REE analysts and sector commentators (data and commentary attributed to REE and industry briefings).
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