About this report
Since the last IEA in-depth review in 2005, Spain has made significant progress in improving its energy policy. In Europe, the country is now leading in gas diversification and liquefied natural gas (LNG) development. Together with Portugal, it has set up the common Iberian electricity market, MIBEL, and has strong ambitions in developing it further. It has also become prominent in developing wind and solar energy technology, and succeeded in integrating large amounts of intermittent power in the electricity grid. Along with other IEA member countries, Spain has set ambitious climate and energy security targets. Achieving these will require a transition to a low-carbon economy. Spain will need to increase its efforts to reduce CO2 emissions, particularly in the transport but also in the critical power sector. As fossil fuels still provide more than half of electricity, Spain will need to keep open all the options – including nuclear, renewables, and the technology of carbon capture and storage – for making its power sector less carbon-intensive.