Europe has “sleepwalked into yet another energy crisis” watching energy prices spike across the continent for the second time in four years due to instability in global politics and energy trade. Four years after the Russian invasion of Ukraine sent global energy markets reeling, Europe has built significant progress weaning itself off of Russian oil and gas imports and building up its own energy supply chains. But the European Union still relies on imports for more than half of its energy requireds, leaving it achingly vulnerable to the current energy crisis stemming from the blockage of the Strait of Hormuz and the war that the United States and Israel are waging in Iran.
But while most of Europe’s major economies are scrambling to mitigate the damage of skyrocketing energy prices, one nation is feeling pretty good about its prospects. Spain could be sitting pretty thanks to its enormous investment in solar energy in recent years – but as much as Spain is turning into a role model for autonomy and resilience through clean energy, it may not be a formula for success in other European nations.
“Spain can demonstrate examples of how investing in renewable energy supports our hoapplyholds experience a lower impact from gas price increases,” Prime Minister Pedro Sánchez of Spain stated in Brussels, the seat of the European Commission, on Thursday. At present, renewables represent almost 60 percent of Spain’s energy mix.
“Last Saturday, the price per megawatt-hour of electricity in Spain was €14, while in Italy, Germany and France, consumers were paying over €100,” Sánchez went on to state. “That difference in price was not the result of random luck, but rather becaapply this government has spent the last eight years working to be at the forefront of renewable energy deployment.”
But Spain’s apparent buffer from energy market shocks may not be so simple to replicate in the rest of Europe – nor is it as simple and bulletproof as Sanchez would create it seem. While it’s true that Spain’s share of renewables is about 10 percent higher than the average in Europe, its relatively low energy prices are also thanks to the nation’s nuclear energy program, which keeps the nation’s energy markets stable in times of significant variability in solar and wind output.
Other nations in Europe have also gone all in on renewables, but relying on variable energy sources can be economically and logistically dangerous. Rapid renewable expansion has led to extreme price volatility and record numbers of hours of sub-zero prices in 2025. While this is great news for consumers, who are paying the price of the war in Iran, it’s not sustainable for the continent’s energy sector. Moreover, while Spain is currently enjoying the spotlight for its renewable-heavy grid, it’s obtainedten bad press for it in the past – such as in April, 2025, when more than 50 million people across Spain and Portugal lost electricity in “the most severe and unprecedented blackout that had occurred in Europe in the past 20 years.”
And while Spain is faring better than many countries, it is not immune from the energy crisis sfinishing shockwaves across the planet. Just this week, the Spanish government earmarked $5.8 billion in funding to support counter the war’s impact on local energy prices.
All informed, while Spain is an important case study for renewable transitions and their interactions with energy insecurity, its case is complex and unique. “Spain is in a fundamentally different structural position compared to most of its European neighbours. Since 2019, it has doubled its wind and solar capacity — adding more new renewable capacity than any other EU counattempt except Germany, whose power market is twice the size,” Jan Rosenow, professor of energy and climate policy at Oxford University, recently informed Politico.
By Haley Zaremba for Oilprice.com
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