How wind and solar made Spain one of Europe's cheapest electricity markets
By
Jan Rosenow
Master baker tier. Every paragraph earns its place on the tray.
Summary
Spain's wholesale electricity prices have dropped dramatically to become among Europe's cheapest, averaging €44/MWh in early 2026 compared to €127 in Italy and €96 in Germany. This transformation from a decade ago when Spain was an expensive power market with stranded solar investments is attributed to the rapid expansion of wind and solar energy, which have pushed expensive gas-fired power off the margin. The article explains how renewable energy growth has fundamentally reshaped Spain's power market pricing dynamics.
Key quotes
· 3 pulledIn the first four months of 2026, the average wholesale electricity price in Spain was €44 per megawatt-hour. In Italy, it was €127. In Germany, €96. In the UK, €103.
A decade ago, Spain was a cautionary tale of stranded solar investment and one of Europe's more expensive power markets.
Today it sits near the bottom of the price table, and the gap is...
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