Spain’s dependence on energy imports has “decreased markedly”.

That’s according to a new report by the International Energy Agency (IEA), which said it’s due to an increase in renewable energy generation.

The IEA praised the country for its success in enhancing the security of its energy supply and introducing financial stability to its electricity and natural gas systems.

The report states the country enjoys “robust energy security” because of its oil stocks – which are substantially higher than what is required by law – and its liquefied natural gas (LNG) capacity which is “significant by international comparison”.

CEO Maria van der Hoeven said: “After so many years of limited results, it is encouraging to see these steps in the right direction – but let us be clear, they are first steps.”

However, the IEA’s report states there are areas which still need improvement.

It suggests “strong commitment” to the “necessary” electricity reform is needed in order to regain investor confidence.

The report also stressed although Spain’s greenhouse gas emissions from energy use have been declining, they need to be reduced further.

It suggests the transport sector offers “prime opportunities” for this.

Among its key recommendations, the IEA report calls for developing a long-term energy strategy covering all sectors in close consultation with all stakeholders.

It goes on to say reforming energy taxation and introducing revenue-neutral fiscal incentives are important to encourage greenhouse gas reductions and energy efficiency improvements.

It added maintaining a strong long-term commitment is needed to balance the costs and revenues in the electricity and natural gas systems. It also said it would help with transparency, predictability and certainty when suggesting changes to these systems.