Commodity Market Report
Spain energy markets long-term outlook 2019
Report summary
Like most European countries, the Spanish government has outlined ambitious targets to decarbonise the economy. Renewables are at the forefront of the transition plan, while coal and nuclear will gradually be phased out. As intermittent renewable output grows, the need for flexible generation will benefit natural gas – particularly as other thermal capacity is retired. This plan would radically change Spain's energy mix in the coming decades, but remains ambitious and difficult to deliver. The uncertain and changing political landscape also creates additional policy timing and execution risks.
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