ABSTRACT
As in many other countries, the policy of the Spanish government toward the electricity sector has had three sometimes conflicting objectives: low prices, security of supply, and environmental sustainability. Over the last few years, the government has promoted investment in renew energy, both wind and solar, with those objectives in mind. The expansion in low-marginal-cost renewable capacity was expected to push wholesale prices (excluding subsidies) downward; reduce the traditional dependency of the Spanish economy on imported primary energy sources; and meet the government’s emissions reduction targets.
