Spain

Index rank 09

Balance Score

AAA

Energy Sustainability Index Rankings and Balance Score

 2011  2012  2013  Trend Score
Energy Performance  12  12  7   
Energy Security  37  31  22  A
Energy Equity  20  24  16  A
Environmental Sustainability  23  23  23  A
         
Contextual Performance  30  27  24   
Political Strength  46  46  40   
Societal Strength  31  24  24   
Economic Strength  18  20  25   
         
Overall Rank  12  12  9  AAA
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Fossil Fuel Reserves

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Key Metrics

Industrial sector (% of GDP) 24.2
TPEP / TPEC  (net energy importer) 0.28
Emission intensity (kg CO2 per USD) 0.22
Energy affordability (USD per kWh) 0.19
GDP / capita (PPP, USD); GDP Group 30,478 (II)
Energy intensity (million BTU per USD) 0.10
CO2 emissions (metric tons CO2 per capita) 5.83
Population Access to Electricity (%) 100.0
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Index Commentary

This year, Spain improves its already excellent performance by breaking into the top 10 in the overall Index rankings. Spain balances the competing dimensions of the energy trilemma well, with equally strong performance on all three. Although Spain is one of the world’s larger energy importers, it still performs fairly well on the energy security dimension by maintaining a diversified electricity mix, low distribution losses of electricity, and moderate oil reserves. Spain improves its energy equity ranking this year by continuing to offer high-quality electricity to all of its citizens at reasonable prices. Like many of its fellow EU members, Spain performs well on the environmental sustainability dimension, with 20% of its energy coming from nuclear power, 15% from hydro power, and 19% from other renewables such as wind. Spain’s contextual indicators remain relatively constant, apart from a small drop in economic strength due to the adverse macroeconomic conditions.

Trends and Outlook

The Spanish administration keeps its commitment to renewable and low-carbon energy. In doing so, the country pursues a more efficient way of reducing CO2 emissions, becoming a more environmental-friendly producer and consumer of energy.

As for the energy equity aspects, the country has been dragging on a tariff deficit since 1997. In order to put an end to this situation, the Spanish government approved several regulatory measures during the last years that concluded in July 2013 with the approval of an energy reform in order to reach tariff adequacy during this year and to guarantee budgetary stability in the future.

Additionally, the Spanish administration’s indicative energy plan for 2011-2020 has maintained its commitment with the triple goal of improving the security of supply, increasing competitiveness and guaranteeing the environmental sustainability. Spain is a net oil and gas importer with an energy mix mainly based on hydrocarbons. It produces little energy of its own, and must minimise the risks associated with this. Therefore, Spain is decreasing its energy dependence rate with a policy of energy savings, efficiency, and renewable energy sources. The exploration and production of indigenous hydrocarbons should also be strengthened. All these factors will reduce dependence on imported energy sources and improve the balance of payment.

Policymakers need to continue focusing on several challenges such as the need for a higher electricity interconnection power grid capacity with other European member states, its ageing nuclear system, and the upcoming rises in the cost of electricity related to Spain’s tariff deficit reduction objective.