Spain’s current energy situation mirrors that of many other sectors in the country — and indeed, of the business world at large. The same outdated formula applies: maximize profits and political gain, often at the expense of social justice. Our predatory economic model, driven by speculation, is degrading the environment and concentrating economic and political power. This threatens future generations and undermines the progress achieved under the very same liberal model over the last decade.
This crisis is not temporary — it’s the logical outcome of years of short-sighted decisions. Financial returns have been prioritized over social and environmental well-being. Despite technical advances — 56.8% of Spain’s electricity came from renewables in 2024 — the system is increasingly unstable, expensive, and exclusionary.
1. Diagnosis of the current situation
Energy mix and vulnerability
In 2024, renewable energy generation reached a record 148,999 GWh, 10.3% more than the previous year and 56.8% of the electricity mix. However, the gradual closure of gas, coal, and nuclear plants has weakened the system’s “firm capacity.” The most visible effect? A historic blackout on April 28, 2025, when 15 GW of solar PV shut down in five seconds, cutting electricity production by 60%.
Rising prices and volatility
In 2024, average electricity prices stood at €63.19/MWh — only 28.4% below the 2023 peak. But volatility was high: prices ranged from €13.67/MWh in April to €111.23/MWh in December. This instability drives up bills and shows how exposed the system is to climate and market fluctuations.
Persistent energy dependence
Despite the renewable boom, Spain still imports 66.8% of its energy, far from the 2030 target of 50.6% set by the PNIEC. This prolongs geopolitical uncertainty and raises the country’s fossil fuel import bill.
Rising energy poverty
17.6% of the population cannot afford basic lighting or heating. Another 20.8% struggles to keep their home warm in winter — the highest rate in the EU. The current energy model is leaving millions behind and violating the basic right to energy access.
2. Failures and responsibilities
Profit over resilience
In 2024, major energy companies posted record profits: Iberdrola earned €5.6 billion (+17%), while Endesa doubled its earnings to €1.89 billion (+154%). Clearly, profit and dividends took priority over accessible and resilient energy supply.
Lack of social and environmental purpose
Social measures like the electricity subsidy or cut-off moratorium have fallen short. Only 21% of the government’s energy poverty plan was implemented. Without a clear purpose beyond profitability, companies continue to overlook vulnerable communities.
Fragmented infrastructure
Despite Iberdrola investing €17 billion in 2024, the grid remains fragile. Poor coordination in storage and grid development is holding the system back. Most large investments focus on international markets, while domestic modernization is neglected.
3. Toward a purpose-driven solution
Redefining corporate purpose
Businesses must place social and environmental impact on equal footing with profit. Governance models should include energy justice criteria and assess projects based on community value — not just ROI.
Supporting energy communities
Collective self-consumption and energy cooperatives can democratize energy access, lower costs, and strengthen local resilience. During the latest blackout, battery-powered homes with solar remained operational.
Strong, coherent regulation
The state must enforce a regulatory framework that rewards positive impact and penalizes speculation. Reforming the energy social tariff, subsidizing clean energy installations in vulnerable homes, and taxing windfall profits are essential.
Investing in storage and flexibility
Reaching the planned 22 GW of storage by 2030 is urgent. Incentivizing flexible demand through off-peak price advantages is also key to managing renewable intermittency.
Transparency and accountability
Companies must publish public impact reports with clear indicators: energy poverty reduction, emission cuts, and social contributions. Only then can they regain public trust and align reputation with real responsibility.
Spain’s energy transition must go beyond replacing fossil fuels — it must be an opportunity to build social cohesion, reduce inequality, and meet the climate challenge with ambition and solidarity. Without a shift in purpose, we will repeat the same mistakes and extend a crisis that disproportionately affects the most vulnerable.
A new economic model is urgently needed — one that balances financial performance with real social and environmental impact. This is how we foster justice, strengthen the middle class, reduce vulnerability, and ensure a fairer, more conscious distribution of capital — without sacrificing merit or effort.