Spain
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Energy system of Spain
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Key recommendations
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Ensure that the National Recovery and Resilience Plan supports achieving the NECP’s targets.
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Improve co-ordination with regional authorities and municipalities to implement the NECP’s measures, especially on energy efficiency, more effectively.
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Reinforce efforts to create more flexibility in the electricity market and to ensure proper price signals for investments in generation, through increased interconnectivity, continued integration of regional markets, and the development of demand-side response and storage.
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Review taxation to avoid excess charges and distortionary impacts on electricity relative to oil and gas consumption to promote electrification. Consider additional carbon-based taxation as well as other mechanisms to progressively redistribute electricity charges among all actors in the energy system.