Spanish PM says war in Ukraine proves significance of renewables

Spanish Prime Minister Pedro Sanchez has said his country — and Southern Europe more broadly — could provide an answer to the shortfall in gas supplies from Russia as the region looks to double down on sanctions against Moscow.

“Spain and, I would say, Southern Europe, will have a chance to provide an answer to this energy dependence on Russian fossil energy,” Sanchez told CNBC at the World Economic Forum in Davos late Monday.

Sanchez highlighted that Spain represents 37% of the European Union’s total regasification capacity — where liquefied natural gas is turned back into the end product of natural gas. He also said the Iberian Peninsula, occupied by Spain and Portugal, is home to around half of the EU’s LNG storage.

“This war also gave us a very important lesson, which is that renewable energy, hydrogen, energy efficiency is not only a great ally for countries and economies to tackle the climate change efforts, but also in this very complex and very uncertain geopolitical scenario that will provide us also means to increase our resilience and autonomy,” he added.

Energy prices have soared this year after Russia’s invasion of Ukraine. Prices on the Dutch TTF hub, a European benchmark for natural gas trading, more than tripled between Feb. 16 and Mar. 7 as Russia launched the unprovoked invasion of its neighbour.

According to the European Commission, EU countries import 40% of gas, 27% of oil and 46% of coal from Russia.

The issue of energy security — and soaring energy prices — has been front and centre in the political debate in Spain, with Madrid being one of the most vocal capitals about the need for European action to bring down prices for consumers.

Together with neighbouring Portugal, Spain has introduced a temporary cap on the price of natural gas and coal — a move that sets them apart from most of the rest of the EU.