Spain’s industrial power costs exceed France by 44% and Germany by 12%
Spanish electro-intensive manufacturers paid €88.63/MWh for electricity at the end of August, according to AEGE, 44% more than comparable consumers in France and 12% more than in Germany. System-balancing costs and lower indirect carbon compensation are widening the competitive gap.
Spanish industrial electricity reaches €88.63/MWh
Electricity costs for electro-intensive manufacturers in Spain remained above those faced by major European competitors at the end of August, adding pressure to industries whose production economics depend heavily on power prices.
The final electricity price for Spanish electro-intensive consumers stood at €88.63 per megawatt-hour, according to the latest energy barometer from the Association of Companies with High Energy Consumption, known as AEGE. Europa Press reported that this was 44% higher than the comparable cost in France and 12% above the level in Germany.
AEGE’s comparison placed the French cost at €61.65/MWh and the German cost at €79.10/MWh. On that basis, a Spanish industrial consumer paid about 1.4 times the French level and 1.12 times the German level. The figures measure final electricity costs rather than simply comparing wholesale market prices, making them more relevant to manufacturers assessing operating expenses and production locations.
System costs widen the gap
AEGE identified electricity-system balancing services as one of the main sources of Spain’s disadvantage. Spanish electro-intensive consumers bear adjustment costs that are not included in the bills of equivalent users in France and Germany, according to the association. These charges widen Spain’s competitive gap by more than €20/MWh.
The distinction matters because a relatively competitive wholesale electricity market does not necessarily translate into an equally competitive final bill. The Spanish Ministry of Industry and Tourism has said that spot prices are supplemented by balancing services, network charges, taxes and other regulated costs. The ministry also said existing public support does not fully align Spanish final prices with those in France and Germany.
For producers, the resulting cost difference can influence margins, operating rates and the attractiveness of new capital expenditure. AEGE represents businesses in metallurgy, chemicals, steelmaking, industrial gases, glass and extractive industries. Electricity is a core production input across those sectors, so a sustained national price premium can affect bids for customer contracts and competition with plants elsewhere in Europe.
Carbon compensation favors German producers
Differences in compensation for indirect carbon costs create another imbalance. AEGE said German electro-intensive industries receive substantially more compensation than their Spanish counterparts, whose support is constrained by limited budget availability. The association estimated that the German advantage from these payments amounts to €21/MWh.
Indirect carbon compensation is intended to offset electricity-price costs associated with carbon pricing. When support differs between countries operating within the same European market, plants can face materially different net power bills even when they compete for the same industrial customers. For Spanish manufacturers, that raises the risk that production, investment or customer orders will favor facilities benefiting from lower final energy costs.
The immediate trade effect is most relevant in electricity-intensive goods that can be sourced from competing European plants. French producers have the clearest cost advantage in AEGE’s August comparison, while German manufacturers retain a smaller but still meaningful advantage over Spanish rivals. Importers purchasing metal, steel, chemical or glass products may therefore find suppliers outside Spain better placed to absorb price pressure or offer competitive terms.
Investment case depends on final delivered cost
The August barometer indicates that Spain’s industrial competitiveness challenge is not confined to electricity generation prices. The composition of the final bill—and the way governments compensate eligible industries—can be decisive for plant economics.
Investors considering Spanish energy-intensive capacity will need to evaluate balancing charges and carbon-cost relief alongside wholesale prices and renewable-power availability. Existing producers, meanwhile, face a policy-dependent gap against French and German plants. A reduction in Spanish system costs or stronger compensation could narrow that difference; without such changes, the power premium remains a headwind for production and industrial investment.
