Energy

Spain's blackout shield and funding gap erode its advantage in renewable energy compared with France and Germany

Energy-intensive factories pay up to 30% more than their French competitors despite lower wholesale prices, while households face an additional cost of 123 euros in grid charges

For sectors such as the steel industry, the gap with neighbouring European countries is putting pressure on profit margins and influencing investment decisions. (R.C.)

04/11/2026 Actualizado a las 11:37h.

Spain has managed to use wind and solar power to bring down the price of electricity, but these savings are not being passed on to ... the same extent to businesses' accounts and households' bills. Energy-intensive businesses pay 107.90 euros per megawatt hour, 30% more than their French counterparts and 13% more than their German counterparts, despite the fact that the Spanish wholesale price is lower than that of both countries, according to the AEGE energy barometer.

Behind these differences lie the costs of maintaining grid stability and differences in public subsidies, which are offsetting much of the country's energy advantage. The historic blackout of 2025 made it necessary to strengthen the mechanisms to ensure the stability of the system. Since then, balancing services have accounted for a larger share of the bill.

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According to Papernest's calculations, the average cost reached 22.08 euros per megawatt hour between January and September 2026, compared with 12.65 euros in the reference period prior to the blackout, an increase of nearly 75 per cent. Translated into household bills, this amounts to an additional 123 euros for an average household from April last year to September, while the regulated tariff has risen by 36% over the past year.

However, the impact of this anti-blackout shield is proving particularly burdensome for the companies that require a continuous supply of electricity. The employers' organisation representing the interests of energy-intensive industries estimates the cost of these services for Spanish factories at 20.87 euros/MWh, compared with zero euros for their French and German competitors.

This disadvantage goes beyond the network's operating costs: it also extends to public compensation for indirect carbon dioxide emissions, which is intended to alleviate the impact of emissions allowances on the most energy-intensive industries.

According to the aforementioned barometer, the gap compared with its European rivals stands at around 21 euros per megawatt hour and the association attributes this to the budget cap of 600 million euros in Spain. For sectors such as steel, chemicals and aluminium, where electricity can account for more than half of manufacturing costs, this gap erodes profit margins and influences investment decisions.

A 'seasonal' IVA

The outlook offers little hope in the short term on the domestic front, where electricity prices remain, for the time being, with no tax relief while bills continue rising. Papernest's forecasts predict that the electricity CPI will be around 10.6% in October.

In light of the current IVA reductions, which only come into effect if the cost of electricity rises by more than 15% year-on-year in the CPI (and which, following September's 11.4% rise, will see electricity taxed at 21% in November), Professor Ernesto Campos Campillo of the Valencian International University advocates for "a seasonal reduced IVA rate, from November to March, limited to an initial band of basic demand in the main residence".

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