It is often thought that France and Spain are rather antagonistic countries when it comes to energy policy. Spain is a country with a clear commitment to renewables and that plans to phase out nuclear energy in the medium term, while France remains firm in its historic nuclear commitment despite the obvious difficulties it will face in maintaining its nuclear capacity in the long term. There have also been historical problems with the energy interconnection between the two countries, which in Spain are attributed to a lack of French interest and in France to the lack of reasonableness of the projects.
“In energy policy Spain and France share more than it seems: both are countries clearly committed to climate action and the concept of energy sovereignty”
Despite these different approaches and the historical problems, in energy policy Spain and France share more than it seems: both are clearly committed to climate action and the concept of energy sovereignty. During the peak of the price crisis in 2022, when in Spain and Portugal the Iberian exception was established, France actively defended a new price-fixing system that reflected the lower production costs of inframarginal technologies compared to the German position, which was reluctant to derationalize the fixation of the marginal price. In general, the energy visions of the north and the south of Europe differ in some points, with northern countries adopting a more orthodox view of the market and the need for a high energy cost as a driver of efficiency, a notion that southern countries do not share.
In a context where Europe feels geopolitically adrift between two increasingly hostile powers —Russia and the United States—, and where energy independence and geopolitical autonomy are closely linked, France and Spain may be more aligned than ever on energy matters. In fact, both countries could push proposals from the perspective of Southern Europe that, in this scenario, would be better received by the central and northern states of the continent. However, this new reality also requires us to rethink questions that we have not adequately addressed in the past. Every change brings with it the need for new approaches.
In my opinion, France and Spain can contribute to the new paradigm of Europe’s energy independence in several ways:
- Improvement of energy interconnections. It is essential to connect the Iberian Peninsula with Europe, and it is logical that this interconnection be done through France rather than via long submarine cables toward Italy or the United Kingdom. The 5,000 MW of electrical interconnection that will presumably be in operation in 2028 are clearly insufficient to exploit the solar and wind potential of the Iberian Peninsula. Currently, both countries are net exporters of electricity.
- Decoupling the electricity price from the cost of natural gas. Although the EU has evolved in this regard and its regulatory framework is starting to talk about reducing the volatility of electricity prices derived from their linkage to gas costs or limiting very high prices, the marginalist dogma has not yet been broken. Spain and France, with highly decarbonized electricity mixes, should support market models where the final price depends on the generation costs of the entire mix, not only the marginal source. This model will eventually be desired across Europe as other developed countries deploy more renewables, but Spain and France must get ahead of that moment. In fact, a more stable and less volatile market price would also ease resistance to more electrical connections between countries.
- Deepening electrification through a more active role for the state. The electrification of the economy requires a stronger orientation of energy and industrial policy than we have had so far. France played that historic role during the Plan Messmer and, despite what we tend to think in Spain, today it also stands out in some areas of the energy transition such as the sale of heat pumps. Spain has had a very good renewable development in recent years and its industrial policy is closely linked to the competitiveness offered by these energies. Both countries can advocate for a policy in favour of more daring electrification and with a more prominent role for the states and public investment.
- Building a narrative in which decarbonization is presented as a key tool for Europe’s strategic autonomy is a winning bet, especially in Spain and France. Both countries have historically defended European sovereignty and have societies that instinctively distrust Republican administrations in the United States. The figure of Donald Trump, in particular, has a very negative image among the majority of Europeans, except among voters on the radical right. In this context, linking the energy transition to strengthening Europe against actors that generate distrust would not only be warmly welcomed in Spain and France, but would also reinforce the Republican front in France and the democratic and progressive forces in Spain, provided they avoid the temptation to pact with parties aligned with Trump.
Spain and France have virtues, experiences and strategic approaches that can contribute a lot to Europe, but we must be realistic and understand that we also have flaws and things to change. Among them is excessive bureaucracy that is not adapted to the needs of the energy transition or powerful internal dynamics resistant to change from certain sectors of the economy, politics or unions.
“In Europe an unavoidable scenario prevails if it wants to survive in the new situation: more unity and more Europe”
The new geopolitical reality is full of uncertainties and dangers. These are not easy times and many things can go wrong. But in Europe, an unavoidable scenario must prevail if it wants to survive in the new situation: more unity and more Europe. This will force us to talk much more with each other, to be much bolder in our policies and, also, to set aside certain prejudices that we can no longer afford. Spain and France must become much closer allies and make their energy importance felt across the continent.
