Climate Action (OTEA), together with the Energy Transition Observatory and the BC3 – Basque Center for Climate Change, has presented a new report that provides an exhaustive analysis of the progress and challenges presented in Spain, the move towards a just energy transition.
Key points from the energy transition report
The key points from the report are the following:
Decrease
Reduction of the average energy bill: In 2023, the average household energy bill fell by 9.8% compared to the previous year, reaching 2,538 euros, although still 5.4% above the level of 2019. The energy crisis are the main factors of this decline.
Decrease
The “energy tax” is decreasing, but inequality remains: Although the average energy burden has been reduced from 8.6% to 7.8% of total expenditure, the most vulnerable families continue to face a greater burden. The energy burden of households below the poverty line is 9.3%.
Energy poverty
Slight increase in severe energy poverty: According to the LIHC (Low Income High Cost) indicator, 6.9% of households are in a situation of severe energy poverty, which represents a slight increase compared to 6.6% in 2022. Although energy prices have fallen and employment is growing, some vulnerable household groups have not experienced significant improvements. Furthermore, it is noted that this indicator has increased since 2019, increasing energy poverty from 1.1 million people in 2019 to 1.3 million in 2023. This underlines the need to strengthen measures to reduce energy costs in vulnerable groups , such as the social bonus.
Transport
Reducing energy poverty in the transport sector: In 2023, on the other hand, the LIHC indicator related to transport improved, affecting 3.4% of households to 2.6%, thanks to the drop in fuel prices and support for public transport.
Inequality
Inequality by gender and geographic location: Female-headed and rural households continue to face higher rates of energy poverty. These homes have a greater energy burden, especially in the areas of heating and fuel, due to less efficient homes and greater dependence on private transport.
Green employment
Green employment has increased by 25,000 jobs and will already reach 530,978 jobs in 2022, mainly thanks to the rise of renewable energy.
The report highlights the urgent need to tackle energy poverty through concrete measures. It is recommended to speed up the process energy renovation of buildingsespecially in vulnerable housing, improving financing and reducing bureaucracy.
In addition, it proposes to automate the electrical and thermal social bonus to facilitate its access to more households in vulnerable situations. In rural areas, it is proposed to promote and support energy self-consumption and energy communities the installation of renewable energy sources and shared networks.
It is also crucial to improve public transport and promote the use of electric vehicles, and encourage their adoption with economic support programs. Finally, the EU Social Climate Plan, which will enter into force in 2025, should be an important instrument to access funds and support vulnerable households in his adjustment transition energy.
The research has focused on two key areas: the evolution of energy bills and energy poverty in households and the growth of green jobs. The results highlight substantial progress, but also urgent challenges that require immediate political action.