The latest escalation of tensions in the Middle East has once again shaken the delicate balance of the global energy market. Oil and gas have returned to the center of the geopolitical stage, with international attention focused on the Strait of Hormuz, through which nearly 20% of global crude oil passes. In this context, the Brent crude barrel has once again surpassed the $100 mark. Moreover, growing insecurity in the region has forced shipping companies and energy firms to alter routes and strengthen protection measures, increasing logistical costs. This rise feeds through the entire economy, pushing up energy and transport prices and ultimately fueling global inflation. This scenario is compounded by the structural impact of the war in Ukraine. Since the European Union imposed sanctions on Russia—including a ban on seaborne oil and a drastic reduction in gas imports—Europe has had to redesign its energy map to avoid a supply crisis, resulting in a market that is more expensive, volatile, and exposed to geopolitical tensions.
Amid this uncertainty, Spain has emerged as one of Europe’s leading renewable energy powers. The country closed 2025 with a historic record: 56.6% of electricity generation came from renewable sources. Wind power led the mix at 21.6%, followed by solar photovoltaic at 18.4%.
Over the past decade, growth has been extraordinary: wind and solar have more than doubled their share in the electricity system, becoming the central pillars of the energy model. In fact, Spain has on several occasions managed to meet 100% of electricity demand with renewable energy for consecutive hours—an achievement that would have been unthinkable just a few years ago.
Critics of the energy transition often claim that renewables drive up electricity bills, but this is not the case in Spain. The country ranks in the lower segment of European wholesale electricity prices, with an average of €65/MWh in 2025. Markets with much lower renewable penetration, such as Italy and Germany, show prices of €90 and €115/MWh, respectively.
As a result, Spain now boasts one of the cleanest and most competitive energy mixes in Europe. Its combination of abundant solar resources, excellent wind conditions, and available land places it in a privileged position to lead the energy transition promoted from Brussels.
This advantage has recently been highlighted by the Financial Times, which identifies Spain as a model in managing the impact of global energy crises, such as the one triggered by the conflict in Iran. While countries like Italy and the United Kingdom face sharp increases in electricity prices due to their heavy dependence on gas, gas-fired generation in Spain is only the fourth- largest source. In Spain, gas prices determine electricity costs only 15% of the time, compared to 89% in Italy. This strategy not only protects consumers but also strengthens the country’s political autonomy and positions Spain as a benchmark for Europe’s energy transition.
However, this potential is not yet fully exploited due to a structural problem: limited electricity interconnection. Currently, exchange capacity—mainly through France—barely reaches 3–4% of installed capacity, far below the 15% target set by the European Union.
This constraint creates significant inefficiencies. During periods of high renewable production, Spain is forced to curtail generation or accept very low prices, even close to zero. This summer alone, the system wasted renewable energy valued at up to €129 million—a historic record. This phenomenon not only limits resource utilization but also discourages new investment.
A recent European Union report on the blackout that occurred on April 28, 2025, in the Iberian Peninsula clearly underscores the vulnerability resulting from the limited electrical interconnection of Spain and Portugal with the rest of Europe. According to the analysis, low exchange capacity—mainly through France— contributed to the blackout having a total reach, affecting millions of users. The report recommends strengthening cross-border interconnections and improving coordination between operators, noting that greater export capacity would not only increase the resilience of Spain’s system but also allow the country to contribute more significantly to European energy security, thereby consolidating its strategic role in the transition to a cleaner and more stable electricity mix.
Moreover, the lack of interconnection has consequences at the European level. In a context of energy crisis, Spain cannot fully help reduce the continent’s dependence on imported fossil fuels. Greater export capacity would allow part of gas consumption in other countries to be replaced, strengthening overall energy security.
Some progress is underway. The electricity interconnection project through the Bay of Biscay with France, scheduled for 2028, will add 2 GW of additional capacity. However, this increase remains insufficient to close the existing gap, representing only about 5% of Spain’s installed generation capacity, whereas the European Union had set a target of 10% for 2020, rising to 15% by 2030. Moreover, although meetings have recently been announced to promote its implementation, the project faces political reluctance, particularly from France, whose energy model—heavily reliant on nuclear power—competes directly with Spain’s renewable surplus.
Beyond connections with its northern neighbors, current technologies open the door to new strategic interconnections with other markets, such as North Africa (especially Algeria), as well as countries like Italy and Ireland. In this regard, it is worth following the example of major projects such as Eastern Green Link 4 between Scotland and England, North Sea Link between Norway and the United Kingdom, Neuconnect between the UK and Germany, and Viking Link between Denmark and the United Kingdom.
If this path is not maintained and the expansion of interconnections is not accelerated, Spain risks underutilizing one of its main strategic advantages— and, more importantly, the energy future of Europe as a whole could be compromised.