Overall costs of electricity, heating, cooling, water and waste disposal are 40 percent cheaper in Spain, where the cost of living is, on average, 26.5 percent lower than in UK.
Households across Britain are facing another energy bill increase from April 1 after the regulator Ofgem raised its price cap by 6.4 percent, adding £111 for the average household per year.
Rising bills hit low-income households hardest, as they absorb a larger portion of their budgets, pushing many into fuel poverty.
If you listened to the likes of Richard Tice, you’d be convinced that renewable energy makes us poorer.
“More renewables making us poorer and exposed to foreign energy, the Reform deputy leader posted in September 2024.
However, in direct contrast to such claims, compared to the UK, Spain has managed to keep energy costs significantly lower through extensive use of renewable energy.
Overall costs of electricity, heating, cooling, water and waste disposal are 40 percent cheaper in Spain, where the cost of living is, on average, 26.5 percent lower than in UK, according to data from the world’s largest cost of living database.
Spain has long been a leader in the European renewable energy sector. It was an early adapter of onshore wind farms, which now account for more than 20 percent of the country’s power generation. Over the last couple of decades, it has made substantial investments in wind and solar capacity. Hydropower, which used to be Spain’s largest source of renewable energy, accounts for approximately 10% of its total generation today.
“Spain’s renewable energy achievements come as no surprise given its history of strategic investments and early adoption. Its progress should be a clear benchmark for counterparts and serve as testament to the attainability of a cleaner energy future,” said Fabian Ronningen, senior renewables and power analyst,” Rystad Energy.
A study by BBVA analysed the impact of renewable energy on electricity prices in Spain. From 2021 to 2024, Spain’s growing share of low-marginal-cost renewables, primarily solar photovoltaic (PV) and onshore wind, led to a nearly 20 percent reduction in wholesale electricity prices.
Renewables help reduce electricity prices despite their reliance on weather conditions and the current lack of energy storage. And while lower energy prices have reduced revenues from solar and wind energy, particularly for solar, there is no indication that this trend is discouraging further investment in renewables, a phenomenon known as “cannibalisation,” the study found.
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