HISTORY OF ELECTRICITY IN SPAIN
History of electricity in Spain: from public lighting to renewable energies
Discover the fascinating history of electricity in Spain from its origins, with the pioneers of the 19th century, to the present day, with the rise of renewables. Discover all the dates, milestones, names and key facts from over 150 years of the Spanish electricity system to understand the present and glimpse the future.
Key takeaways about the history of electricity in Spain
- The origin of electric light in Spain dates back to the 19th century, although the first official records of electricity in the country date from 1901.
- By the end of the 1920s, installed capacity had increased twelvefold and 81% of electricity generation was hydroelectric.
- In the mid-1940s, an interconnected and centralised electricity system began to take shape.
- In the 1960s, the first nuclear power plants came into operation. In 1983, Red Eléctrica de España, S.A. was created as the unified public operator for the electricity system through the high-voltage grid.
- The 1997 Electricity Act drove the liberalisation of the electricity market.
- The 21st century is characterised by the energy transition and the use of renewable energy sources instead of fossil fuels.
The origins of electricity in Spain and the birth of electric lighting
The history of electricity in Spain dates back to the 19th century, although the first official records of the electricity situation in Spain date from 1901, when the Ministry of Agriculture, Industry, Trade and Public Works published Statistics on the Electricity Industry in Spain at the end of 1901.
Before that, a handful of pioneers began to light laboratories, factories, workshops and some cities with electricity instead of coal, oil or petroleum lamps, which had been used until then to light up the darkness.
One of them was the Barcelona pharmacist and chemist Francesc Domènech, who, after several attempts and thanks to a device consisting of two conductors and 40 batteries that produced galvanic current, managed to create a system with enough electrical energy to light his pharmacy and part of the street in 1852. This experiment took place decades before Thomas Alva Edison commercialised the carbon filament incandescent light bulb on a large scale in 1880.
It was also in Barcelona where the most important lighting tests took place in the early days of electric light in Spain. In 1875, engineer Narciso Xifra installed a lighting system with a voltaic arc in the foundry of La Maquinista Terrestre y Marítima. Meanwhile, optician, importer and inventor Francesc Dalmau had obtained the patent for Gramm's dynamo, capable of generating direct electric current. The two began working together, with Xifra as technical director, to install electricity generation plants in schools, offices, factories and homes in Barcelona, other Spanish towns and even in the former colonies (Cuba and the Philippines).
Francesc Dalmau needed capital to industrialise a business with a future, beyond individual installations. Now an older man, he had delegated part of the work to his son Tomás Dalmau. It was Tomás who, together with other shareholders, founded the Sociedad Española de Electricidad in 1881, the first of its kind in Spain.
In the wake of the momentum generated by the company known as La Española, which over the years set up two subsidiaries in Madrid and in Valencia and collaborated in the installation and management of electricity supply companies in other Spanish cities, in 1882 other business initiatives with temporary lighting contracts emerged such as the Compañía General de Electricidad, Fuerza y Luz Eléctrica, which was responsible for lighting the Puerta del Sol and the Ministry of War.
From then on, thanks to the emergence of new electricity companies in different parts of Spain, power stations began to be installed for public distribution, coinciding with the commercialisation of Edison and Swan light bulbs.
Rural and urban electrification in Spain: a gradual change
Electricity did not reach rural and urban areas in Spain until the 1880s. Girona was the first city to be lit by electricity on a large scale, during its July festivities in 1886.
After that, cities such as Jaén, Cádiz, Badajoz, Ronda, Alicante and Girona itself issued a call for bids for the public lighting of streets and avenues. In 1888, the Pamplona City Council awarded the contract for its public lighting, which was powered by hydraulic dynamos, although it had the extra support of steam machinery.
By 1890, most provincial capitals had power stations. A year earlier, the German company Siemens-Halske opened a branch in Barcelona, which opened up a new source of financing –foreign investment– with the consequent proliferation of electricity factories, usually located near large cities. German capital from Siemens and other electrical equipment manufacturers was involved in Madrileña de Electricidad (1890), Sevillana de Electricidad (1894), Barcelonesa de Electricidad (1894) and Eléctrica Malagueña (1900), among other electricity factories founded between the late 19th and early 20th centuries.
Thanks to local investors, power stations began to be built in rural areas. These were agricultural and industrial entrepreneurs who used electricity for their own factories and sold the surplus to the local council, villagers or other local industries.
As most of the power stations that generated electricity did so using direct current, it could not be transported over long distances at high voltage. Power stations, then, needed to be located close to the centres of consumption.
In large cities, thermoelectric power plants were more common, i.e. those that used coal to power steam engines connected to dynamos that generated electricity. In rural areas, hydroelectric power stations became popular. These were located near rivers to generate electricity from the force of the water, a more economical resource than coal.
Development of infrastructure and regulation of the electricity system from 1900 to the present day
According to the first official statistics on electricity in Spain, published by the Ministry of Agriculture in 1901, Spain had 875 lighting factories (657 for public use, with 74,262 kilowatts installed (kW), and 218 for private use, with 4,811 kW). As for the primary sources of electricity for these power stations, 50% came from water (hydraulic energy) and 30% from steam (thermal energy). The rest used steam or water (13%) and 7% used gas. Large factories in cities such as Madrid, Barcelona and Seville generated electricity from thermal energy.
Thanks to the ingenuity of Nikola Tesla, with his contributions at the end of the 19th century on alternating current, which opened up the possibility of transporting electricity over long distances, and thanks to the electrical transformer, also developed at the end of the 19th century, which could increase the voltage to transmit electrical energy and then decrease it when it reached the end user, power stations could be located far from large consumption centres and spread throughout the territory.
The expansion of electric lighting required regulation. As early as 1877, local councils were able to regulate municipal lighting services through municipal by-laws; in 1900, a law ruled on the compulsory right of way for electric currents through private land; and in 1901, the rules for the inspection and verification of electricity meters were established by royal decree. State intervention became more palpable following a royal decree in 1924 which reaffirmed, among other things, the duty to supply energy to all applicants and the power of the public administration to set tariffs.
The 20th century saw the consolidation of the electricity system in Spain, and our 21st century is one of energy transition towards the use of renewable energies to fight climate change.
Let’s take a look at this period in the history of electricity in Spain through this timeline, which includes the main dates and milestones from 1900 to today:
1900-1930 | Proliferation of thermal and hydroelectric power plants and expansion of the electricity grid
As large thermal and hydroelectric power plants proliferated and interregional integration networks were laid, alternating current and electrical transformers boosted hydroelectric power production thanks to major works to regulate the main river basins.
Among other milestones, on 19th July 1901, Hidroeléctrica Ibérica was founded in Bilbao, driven by Juan Urrutia to harness the water drops in the Ebro basin. In 1907, the newly founded company Hidroeléctrica Española began the construction of a line to transport electricity from the Molinar waterfall on the Júcar River to Madrid. Spanning a distance of 240 kilometres at a voltage of 60,000 volts, it was the first of its kind in Europe. In 1918, Saltos del Duero was established, pioneering the development of hydroelectric projects, crucial for harnessing the Duero basin. In 1944, Hidroeléctrica Ibérica and Saltos del Duero merged to form Iberduero. Later, in 1992, Hidroeléctrica Española merged with Iberduero, leading to the creation of Iberdrola.
Large-scale electricity production began at this point in the history of electricity in Spain: by the end of the 1920s, installed capacity had increased twelvefold and 81% of production was hydroelectric.
1936-1979 | From the halt caused by the civil war and the post-war period to the first nuclear power plants
During the civil war and the early post-war years, production stagnated. Growing demand and the drought of 1944–1945 led to an energy deficit.
In 1944, the National Institute of Industry (INI), in addition to founding Empresa Nacional de Electricidad, SA (the origins of today’s Endesa) to control the strategic energy sector, also created Unidad Eléctrica S.A. (UNESA), formed by the 17 leading energy companies of the time. Among its primary tasks, UNESA was responsible for interconnecting the national systems with the necessary power stations to establish a transmission network and a Central Dispatching Centre, i.e. a centre where decisions were made on which power stations should be operating at any given time and the necessary electricity exchanges between regions, with the ultimate goal of jointly supplying the entire country.
In 1948, the Nuclear Energy Board (JEN) was created with the aim of developing technical capabilities and training qualified personnel for a potential nuclear programme.
During this period, in addition to the construction of major thermal and hydroelectric power stations, private companies dedicated to electricity generation and supply continued to thrive. For instance, in 1944, Iberduero was established from the merger of Hidroeléctrica Ibérica and Saltos del Duero.
In the regulatory sphere, a royal decree of 1951 established a single tariff system – the so-called Tarifa Tope Unificada (Unified Maximum Tariff) – which set uniform prices across the country. The ministerial order of 31 July 1969, which approved the First National Energy Plan, is also noteworthy.
In the 1960s, which coincided with the Development Plan and international opening, some energy companies decided to invest in electricity production from nuclear energy, planning up to 25 nuclear power stations, with a total of 38 reactors. As a result, the nuclear power stations of Zorita de los Canes, in Guadalajara (1969), Garoña, Burgos (1971), and Vandellós, in Tarragona (1972), were brought into operation.
By 1970, electricity production from hydroelectric power had decreased (50%), and the use of oil in thermal power stations had increased. However, with the oil crises of 1973 and 1979, the first global energy strategy in Spain was promoted, and measures were taken to reduce dependence on this fossil fuel – such as the 1979 National Energy Plan, which helped promote renewable energy and the cogeneration of electricity.
The oil crisis led to an energy planning model that integrated all sectors (electricity, coal, oil, gas), which materialised in the PEN 78, setting ambitious goals for nuclear energy: adding 23,000 MW of nuclear power by 1987 and reducing oil dependence from 68% to around 47%.
Approved in 1979, under the new democracy, it had several objectives:
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Modify the Spanish energy mix by reinforcing indigenous resources to reduce dependence on oil, aiming to reduce its share from 68% to 47% of the energy mix.
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Promote alternative sources: a 23 GW increase in nuclear energy and the development of national coal-fired power stations.
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It included pricing and energy efficiency policies to reduce demand by 10% compared to the historical trend.
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A centralised-indicative approach was adopted, where the state set long-term goals (10 years), but allowed both public and private companies to act. The Ministry of Industry led the drafting of the PEN, with the participation of sector agents. It was formalised as an official document by the government and approved by the courts after democratic consolidation.
This PEN-78 approach marked a strategic turning point that shaped Spain’s energy evolution throughout the 1980s, laying the groundwork for future plans and the market opening in the 1990s, with a significant increase in nuclear generation (+12.8 pp) and gas (+3.6 pp).
The state set strategic objectives and regulations, but investments were managed by both public and private companies.
1980-1995: | Boom in coal as an energy source and nuclear moratorium
In 1980, at the state level and through Royal Decree 228/1980, a plan was launched to accelerate the construction of coal-fired power plants. By 1986, of the 14 coal-fired plants, seven had been built following this plan.
And, between 1983 and 1988, five more nuclear power plants were connected to the national grid. By the end of 1986, coal accounted for 45% of total electricity generation and nuclear power for 30%, compared to 18% and 8% respectively in 1973.
In 1983, the government and the electricity sector approved the creation of Red Eléctrica de España, S.A., a mixed company with majority public capital, which was set up to manage the public service of unified operation of the national electricity system through the high-voltage grid.
That same year, the 1983 National Energy Plan included a nuclear moratorium, i.e. the halting of the nuclear programme with the suspension of the construction of seven power stations, which generated a debt to the nuclear companies that led to a 3.9% increase in the tariff imposed by the government. The government cited as one of the main arguments for the moratorium the need to adapt the construction of new plants to demand, which had suffered following the oil crisis in the 1970s.
Regarding the costs of the generation facilities included in the PEN (National Energy Plans), such as coal, gas, and operational nuclear plants, each owning company took on the risk of their financing, with the expectation of future recovery through electricity prices set by the government. To this end, at the end of the decade, a regulatory structure called the “Stable Legal Framework” (MLE) was introduced, which remained in force from 1988 to 1997. It established compensation based on standard costs for each technology.
The Stable Legal Framework defined the regulatory body for the electricity sector between 1988 and 1997. It emerged at a time of crisis in the energy sector due to various factors: demand contraction, low income levels, high debt, substantial fixed assets due to the nuclear moratorium, etc. Through different regulations, the electricity tariff for service providers was determined using a calculation system with various variables, aimed at reducing uncertainty regarding their revenues.
The MLE became the foundation for infrastructure deployment (power plants and networks), ensuring that operators and distributors would be reimbursed for their investments made under the PEN, and their corresponding operational expenses, with a regulated margin, given the binding nature of the planning.
The Ministry of Industry, CONSE (predecessor of the CNE), and Red Eléctrica assumed regulatory and operational roles, while the private sector, through the electricity companies, managed the construction and operation of the system under the established rules.
In 1985, various regulations were issued to facilitate the construction of mini-hydroelectric power plants with premiums and incentives that remained in place until 2013.
In the private sector, in 1992, Iberduero and Hidroeléctrica Española (Hidrola) merged to create Iberdrola.
At the end of 1994, the National Electricity System Organisation Act (LOSEN) was enacted with the aim of guaranteeing the security of the electricity supply at the lowest possible cost and with adequate quality. In 1995, the National Electricity System Commission was created as an independent regulatory agency to optimise the operation of the system as a whole. In 2013, it was integrated into the National Commission for Markets and Competition (CNMC).
1996-1999 | Directives adapted to the European framework and liberalisation of electricity
During this period in the history of electricity in Spain, there was a high demand for electricity: 30% more than forecasted. There was also a 44% increase in peak demand, a factor that determines the necessary electricity infrastructure (generation, transmission and distribution). Over these decades, electricity prices fell by 30% in real terms.
In the final years of the 20th century, regulatory standards in the industry played a particularly important role:
In 1996, the European Union’s Directive 96-92 was approved, establishing common rules for internal electricity market operation. This directive introduced minimum criteria for liberalisation and the introduction of competition into the electricity system.
In 1997, a new era began in the electricity sector with the approval of the Electricity Sector Law, which initiated the process of separating activities and introducing competition in the generation and electricity trading sectors.
The regulation arose as a transposition of Directive 96/92/EC, aiming to adapt the sector to the European reality. It sought to establish a model of effective competition and efficiency, ensuring supply and protecting consumers, but without state intervention in the activity.
In the new regulatory framework, the regulated monopoly of transport and distribution was maintained through tariff regulation and non-discriminatory access to the grid, with costs legally determined and recovered through network access charges (set by the CNMC).
Regarding generation, an organised production market (electricity pool) was established, where generators bid and supplies are allocated based on price order, operating from 1st January 1998. In this environment, power stations compete daily in a market where the price is determined by supply and demand, moving away from centralised dispatching and guaranteed compensation based on standard costs.
Law 54/1997 introduced a radical regulatory change in the sector's operations and the guarantee of income for generators, as established in the Stable Legal Framework (MLE) to recognise investments made under a binding planning framework. Companies transitioned from a system where they were assured the recovery of investments committed through centralised planning, to facing uncertainty about the recovery of pending investments in all generation facilities.
2000-2025 | The rollout of renewable energies and the energy transition
The 21st century is characterised by the energy transition, i.e. the use of renewable energy sources (wind, solar and hydro are the most important) instead of fossil fuels (gas, coal and oil). The goal was to mitigate climate change by reducing greenhouse gas released into the atmosphere. This is why the use of fossil fuels such as coal and gas has been significantly reduced as a source of energy for generating electricity in thermal power plants.
Since 2010, wind and photovoltaic energy production capacity in Spain has tripled, while, for example, only four coal-fired power plants remain in operation.
In 2023, renewable sources accounted for 50.3% of the national mix for the first time, surpassing electricity generated from gas, coal and nuclear power. This figure was even exceeded in 2024, when electricity production from renewable energies reached a share of 56.8%.
In terms of regulation, it is worth highlighting the current electricity law, which came into force in 2013, and Royal Decree 413/2014, which regulates the production of electricity from renewable energy sources, cogeneration and waste.
History of electricity in Spain
- 1852
- 1881
- 1886
- 1901
- 1907
- 1924
- 1944
- 1961
- 1980
- 1983
- 1992
- 1997
- 2014
- 2023
- 1850
- 1900
- 1950
- 2000
- 2030
1852
Barcelona pharmacist Francesc Domènech creates a device that produces galvanic current, a system with enough electricity to light his pharmacy and part of the street.
1881
On 30 April 1881, the Spanish Electricity Society, the first electricity company in the history of Spain, was founded in Barcelona.
1886
Girona was the first city to be fully lit up by electricity, on the occasion of its July 1886 festivities. Electricity did not reach rural and urban areas in Spain until the 1880s.
1901
The Ministry of Agriculture, Industry, Trade and Public Works published Statistics on the Electricity Industry in Spain at the end of 1901. These were the first official records about the status of electricity in Spain: at that time, the country had 875 lighting factories.
1907
First high-voltage line in Europe: the company Hidroeléctrica Española (now Iberdrola) began construction of a power line between the Molinar waterfall on the Júcar River and Madrid. It was 240 kilometres long with a voltage of 60,000 volts.
1924
Royal decree establishing the obligation to supply energy to anyone who requested it and the power of the public administration to set tariffs.
1944
The National Institute of Industry (INI) created the Empresa Nacional de Electricidad, SA. (the origins of today’s Endesa) and Unidad Eléctrica S.A. (UNESA). An interconnected and centralised electricity system begins to take shape.
1961
The first nuclear power plant, José Cabrera, came into operation in Zorita de los Canes in Guadalajara.
1980
Plan to accelerate the construction of coal-fired power stations. Following the oil crises of 1973 and 1979, the state started to seek alternative to this fossil fuel.
1983
Red Eléctrica de España, S.A. was created as a public operator of a unified electricity system through the high-voltage grid. The 1983 National Energy Plan included a nuclear moratorium ordering the suspension of construction work on seven nuclear power plants.
1992
Iberduero and Hidroeléctrica Española (Hidrola) merged to form Iberdrola.
1997
The Electricity Sector Act led to the liberalisation of the power market.
2014
Royal Decree 413/2014 came into force, regulating the production of electricity from renewables, cogeneration and waste.
2023
Renewable energies exceeded 50% of the energy mix, more than electricity generated from gas, coal and nuclear power.
Evolution of generation: thermal, hydroelectric, nucleare and renewable
At the end of the 19th century, when electric light first appeared in Spain, electricity was generated using thermal and hydraulic energy. From the 1960s onwards, nuclear energy began to be used to supply the electricity system.
Below, we’ll go through the main dates and milestones in electricity production in Spain from thermal, hydroelectric and nuclear energy to today:
The role of Red Eléctrica de España (REE)
In 1983, the government and the electricity sector approved the creation of Red Eléctrica de España, S.A.U (REE). This entity was created as a mixed company with majority public capital and with the goal of managing the public service of unified operation of the national electricity system through the high-voltage grid. It became the first transporter and sole operator of the Spanish electricity system.
Forty years after its launch, Redeia –the commercial name used by the group since 2022– manages, maintains and operates more than 45,100 kilometres of power lines and more than 600 substations. Currently, the state holds a 20% stake through the Sociedad Estatal de Participaciones (SEPI).
How does Red Eléctrica operate?
Electricity is produced, then distributed through a network, and finally reaches the end user. When we turn on the light or connect an electrical appliance, a system is activated that starts at the power plants, where electrical energy is generated. This energy, transformed into high voltage, travels through electrical installations to distribution centres. From there, it is transformed again to the voltage level required for each type of consumption (residential, industrial, or services) and is transported until it reaches the end user.
An electricity network is highly complex because there are several sources of electricity generation that can either add to or replace one another to ensure the system is always supplied. For this complex process to work and reach homes, factories, schools, businesses, etc., precisely when we flip a switch, Red Eléctrica is responsible for operating the electrical system in real-time, 24 hours a day, every day. Moreover, a constant balance must be maintained between generation and consumption because electrical energy cannot be stored in large quantities and must be generated in real-time according to the demand.
The rise of renewable energy in Spain: solar, wind and more
Over the years, innovation and technological advances have driven the international energy sector to search for cleaner and more sustainable energy sources to complement or replace fossil fuels such as natural gas, coal and oil in electricity generation.
These clean energies are known as renewables, and they come from natural and inexhaustible sources such as the sun (solar energy), water (hydropower) and wind (wind energy), which are constantly renewed. Power generated from fossil fuels is called non-renewable.
It isn’t until the 21st century in the history of electricity in Spain that there has been a major commitment to renewables. Through various plans, the increase in the installed capacity of these clean energies throughout the country is being promoted to reduce dependence on non-renewables.
Against the backdrop of climate change, Spain has set itself the goal of decarbonising its energy model by 2050, i.e. making it 100% renewable. Following the latest update of the Integrated National Energy and Climate Plan 2023–2030, by 2030, 81% of electricity in Spain is expected to be generated from renewable sources.
The boom in renewables in Spain is reflected in the data from recent years: in 2023, renewable sources accounted for 50.3% of the national energy mix for the first time, according to Red Eléctrica España (REE), ahead of electricity generated from gas, coal and nuclear power. In terms of installed capacity, renewable energies already accounted for 67% in 2025.
- Solar energy. The use of the sun to generate electricity through photovoltaic panels, known as solar photovoltaic energy, began in the 1960s. In Spain, the starting gun was fired in the 1980s, when Iberdrola España commissioned the first plant connected to the grid in San Agustín de Guadalix, with a capacity of 100 kilowatts. Since the second decade of the 21st century, solar photovoltaic energy has been one of the fastest-growing technologies in Spain: in 2010, the generation of gigawatt hours (GWh) of solar energy was 6,500, and by 2020 it was 15,303 GWh, an increase of more than 50%.
- Wind energy. The other major source of renewable and clean energy is wind energy, which is generated by converting the movement of wind currents into electricity. Wind power was the fastest growing renewable worldwide in the last decade, including in Spain, where it has become the main source of electricity generation. Of the total electricity generated in Spain between 2020 and 2024, an average of 22% came from wind power, according to REE data.
- Hydropower. Hydropower in Spain has played a leading role since the advent of electric lighting in the country in the late 19th century. Today, with more than 1,350 power stations distributed throughout the country, it continues to play a very important role in national electricity generation: according to data from Red Eléctrica, of the total power produced in Spain between 2020 and 2024, an average of 10% was generated from hydraulic energy.
The current role of companies such as Iberdrola España in the Spanish electricity industry
Iberdrola España is one of the country's leading energy groups: we operate in the grid, renewable energy and electricity marketing sectors. More than 11 million customers trust us and our electricity grid covers 10 autonomous communities and 25 provinces, over 270,000 km2.
In business for a century, Iberdrola España has become the leading renewable energy company in the Spanish energy sector. With the aim of promoting the energy transition in Spain to reinforce our commitment to a cleaner and greener future, we are committed to the decarbonisation and electrification of the power industry and the economy.
Iberdrola in the renewable energy industry
