The International Energy Agency's 2001 review of Spains energy policies and programmes. This edition finds that due to Spain’s geographical setting and limited domestic energy resources, security of supply is a core objective of Spanish energy policy. Energy supply grew by some 3.5% per year from 1996 to 1999 and electricity consumption by 6% per year. Spain is increasingly dependent on imported energy. As Spanish energy markets are being liberalised, it is essential for the government to ensure that it sends signals to the markets which evoke sustainable investment in energy.

Progress has been made in electricity and gas market liberalisation during the last few years and full liberalisation of both markets is scheduled for the beginning of 2003. But many details are yet to be defined. The electricity market is still dominated by two large companies and the gas market by one. The report recommends measures to achieve effective competition. Reducing greenhouse gas emissions remains a major challenge for the Spanish government. Carbon dioxide emissions continued to increase along with energy demand. Spanish GHG emissions in 1998 were already 21% above the 1990 level, while Spain is committed to reduce them to 15% above 1990.