Spain | From Drought to Deluge: Spain’s Uneven Hydrological Turnaround

Summary

Spain began 2026 with persistent storms, making it one of the wettest Januaries in decades. Unevenly distributed water gains, both geographically and over time, highlight hydroclimatic volatility as increasingly relevant to Spain’s outlook.

Key points

• Key points:
• Spain began 2026 with one of the wettest Januaries in decades, with rainfall 185% above the historical average, leading to a rapid recovery in reservoir levels.
• The improvement in water availability has been geographically uneven, with strong positive anomalies in the south and the interior, while the north recorded levels below the historical average.
• Reservoir levels rose from just over 50% to above 80% in less than two months, boosting hydropower generation to nearly 30% of the electricity mix.
• The episode underscores how climate shocks are increasingly shaping Spain’s economy, and could influence electricity prices, sectoral performance and regional risk profiles amid more frequent extreme weather events.

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