Alyssa McMurtry
16 June 2026•Update: 16 June 2026
Spain's rapid expansion of renewable energy helped shield households from a sharp rise in electricity prices during the Iran conflict, saving consumers nearly 20% on their power bills, according to a study published Tuesday by energy think tank Ember.
The report found that if Spain's electricity prices were still as closely tied to natural gas markets as they were in 2021, the average household would have paid about €10 ($11.61) more per month since March 2026, equivalent to a 19% increase.
Following the outbreak of the Iran war, European gas prices surged by around 75%, marking the biggest price shock since Russia's 2022 attack on Ukraine, according to the study.
Despite the increase, electricity prices in Spain and Portugal remained relatively steady and among the lowest in the European Union during the first quarter of 2026.
In March, wholesale electricity prices averaged €42 per megawatt-hour in Spain, compared with €143 in Italy, where power generation remains more dependent on gas.
"Spain's long-term, ambitious push on wind and solar is paying dividends, shielding consumers from volatile fossil fuel prices," said Ember analyst Chris Rosslowe.
The report contrasted the situation five years ago, when Spain was among Europe's more expensive electricity markets and rising gas prices quickly translated into higher consumer bills.
Between July 2021 and January 2022, the average monthly household electricity bill rose from €57 to €80 despite temporary government tax cuts aimed at easing the impact.
Ember attributed Spain's improved resilience to renewable energy policies introduced over the past decade, including successive national energy and climate plans that accelerated investment in wind and solar power.
The study also highlighted Spain's response to the nationwide blackout of April 2025, noting that authorities strengthened grid management and renewable integration measures rather than slowing the energy transition.
Between May 2025 and February 2026, Spain added an average of 1.3 gigawatts of new wind and solar capacity each month -- roughly equivalent to adding a large nuclear reactor's worth of generating capacity every month -- slightly more than the 1.2 gigawatts the year before the blackout.
"Spain's policy responses to both the blackout and the 2026 fossil fuel crisis provide a model for other European countries," the report said.
