panics

The ghosts of the energy crisis have once again haunted Europe. As energy expert Alejandro Diego Rosell warnsin just a month of tensions the price of gas (TTF) has skyrocketed more than 90% in March. In most of the continent, this shock translates into an almost automatic increase in the cost of electricity, recalling the “shock” caused by the Ukrainian War four years ago. However, in Spain the unthinkable has happened: the bill has gone down. In short. The electricity bill for customers with the regulated rate (PVPC) has fallen by around 4.8% this month of March compared to the same period last year. The difference with our neighbors is abysmal. While in Italy wholesale electricity is paid at €143/MWh and in Germany it is close to €100/MWh, the Spanish market (pool) closed March with a contained average of €41.5/MWh. How has this been possible? This energy firewall against the geopolitical crisis is not the result of chance, but rather the combination of three fundamental factors: The Government’s fiscal shield: In response to the escalation in the Middle East, the Executive has activated a shock plan. The Official State Gazette (BOE) published Royal Decree-Law 7/2026which recovers the tax cuts from the previous crisis. The VAT on electricity drops to 10%, the electricity tax plummets to 0.5% and the generation tax (IVPEE) is suspended. The muscle of renewables: This is the great structural difference compared to 2022. Alejandro Diego Rosell emphasizes thatSince the start of the Ukrainian war, Spain has added 30 GW of solar energy and more than 3 GW of wind energy to its network. The result is that 65.1% of the electricity consumed this March has come from clean and cheap sources, pushing up electricity prices. pool down. The climatic factor: Nature has also done its part. this winter has been characterized because it was very rainy and windy. This abundance of water and wind has allowed so much energy to be generated that last Sunday the market reached the cheapest hourly price in history: -10 euros per MWh at three in the afternoon. How does it affect the pocket? The combination of low taxes and high renewable generation has meant direct relief for both families and the productive fabric. On the one hand, for an average consumer with a regulated rate, the March bill has stood at 68.10 euroswhich represents a saving of 3.42 euros compared to a year ago, according to comparative data from the CNMC. collected by The Voice of Galicia. For its part, eldiario.es collects estimates from electricity companies which estimate the savings derived solely from tax reductions between 7 euros for small households and up to 20 euros for large families or commercial premises. On the other hand, the most surprising data comes from the large factories. According to the latest Barometer of the AEGE associationthe Spanish electro-intensive industry today pays for electricity at €66.50/MWh, managing to be below the €67.73/MWh paid by the all-powerful German industry for the first time. In sectors where energy accounts for up to 50% of production costs, this surprise represents a vital injection of foreign competitiveness. The small print. To understand the full picture, it is necessary to look beyond the optimistic headlines. The experts consulted by the different media warn of several critical nuances: The hidden cost of “blackout insurance”: Such dependence on renewables has a price, since to guarantee the supply when there is a lack of sun or wind (or when there is excess and the grid cannot support it), Red Eléctrica must turn on gas plants to balance the system. These “technical restrictions” are very expensive and increase the final bill outside the wholesale market. France continues playing in another league: Despite winning the short-term battle against Germany, The Economist remember that we are very far from France. Thanks to its nuclear park, the French industry pays electricity at €32.05/MWh, less than half that of the Spanish industry. Furthermore, Germany compensates for its high market prices by injecting its factories with €38.78/MWh in CO2 aid, compared to the scarce €17.76/MWh allowed by the Spanish budget. The electrical mirage and the threat of summer: Electricity barely represents 20% of the country’s energy consumption. The other 80% (oil and gas for transport and industry) is 100% imported, so Spain remains very exposed to the ups and downs of the Middle East. In addition, Natalia Fabra, professor of Economics, warns that the electrical bargain It has an expiration date: starting at the end of June, the heat will reduce the efficiency of the solar panels, the use of air conditioning will trigger demand and gas prices will once again rise. Resilience facing the crisis. The Third Gulf War has tested Europe’s energy foundations. Spain, unlike what was experienced four years ago, has managed to avoid the first big blow thanks to a cocktail of fiscal intervention and green deployment. As Alejandro Diego Rosell concludesit is true that renewable energies do not magically isolate us from the complex international context, but the data from this month of March leave an undeniable lesson: without them, we would be much worse off. Spain has acquired valuable resilience, but the road to true energy independence is still long. Image | freepik 1 and 2 Xataka | The paradox of the Canary Islands: it is the only autonomous community where the VAT reduction on fuel will not be noticed