In the heart of Galicia, in the interior of the province of Lugo, is located Walls, a small municipality that has revolutionised the way its inhabitants deal with the cost of electricity. With a curious title, this town has been named by many as the place with the cheapest electricity in Spain, and delving into its history allows us to understand how a combination of wind, social justice and political decisions have transformed its economy and quality of life.
An energy model based on wind
Muras is a rural municipality with 668 inhabitants and 381 wind turbines, a ratio that might seem disproportionate. Since the mid-90s, wind energy companies have seen the Serra do Xistral mountains as the ideal place to install their wind turbine farms, taking advantage of the region's strong and constant winds. Companies such as Acciona, Iberdrola, Endesa and Norvento have established a strong presence in this area, operating the 20 wind farms spread across the lands of Muras.
The visual and sound impact of the windmills, however, has not always been well received by the residents. “The benefits of producing this energy did not affect the residents at all, even though they were the ones who suffered from the noise and the visual impact,” explains Manuel Requeijo, the mayor of Muras, who claims that this imbalance was the driving force behind the initiative to transform the tax revenues that the city council collected from the large electricity companies into compensation for the citizens.
Financing of electricity bills
Since 2016, Muras has offered assistance to all registered residents to cover their domestic electricity consumption and that of small businesses, such as bars and livestock farms. This financial support covers between 100% and 70% of the electricity bill, with a maximum coverage of 500 euros per year for families with lower incomes, that is, those that do not exceed 9.500 euros per year.
For households with higher incomes, there are also compensations, although in a smaller proportion. The aid is adjusted progressively: for those with an annual income between 15.000 and 22.000 euros, the subsidies reach 500 euros, while for those with an income between 22.000 and 29.000 euros the figure drops to 400 euros, and 300 euros for those who exceed this threshold.
In addition, small and medium-sized enterprises (SMEs) in the region can also benefit from aid of up to 1.500 euros per year, provided they justify their expenditure on electricity. This support programme was further boosted during the COVID-19 pandemic, when local businesses were facing serious economic difficulties.
Impact on population and social conditions
The town of Muras also faces a severe problem of depopulation. With a mostly aging population (approximately 60% of its inhabitants are over 65 years old), most of the 175 families who have requested support enjoy Free electricity bills or very reduced rates, paying only 10% of their consumption in some cases.
Despite the aid, rural exodus remains one of the main problems facing the town, which in recent decades has seen its population reduced from almost 1.200 inhabitants in 1998 to just over 600 today. Apart from the disadvantage of the shortage of school-age children, which has led the Xunta to threaten to close the local school, the ageing of the population also poses economic challenges, as most of its inhabitants live on minimum pensions.
The Muras municipality, under the leadership of the Bloque Nacionalista Galego (BNG), has faced this situation with a series of initiatives, such as improving the electrical infrastructure. Thanks to the taxes collected from the electricity companies, resources have been allocated to bring electricity to homes that still lacked this basic service, a deficit that was especially noticeable when the first wind turbine was installed 20 years ago. The improvement of the electrical network has allowed residents like Germán, an octogenarian from the village of Baxín, to have access to electricity in his home for the first time.
The wind business: benefactors and controversies
The wind energy business has also left a significant sum in the municipal coffers of Muras. The council has a budget of 1,7 million euros for 2017, of which 1,5 million come from income derived from wind farms. This figure includes taxes such as the IBI (Property Tax) and the IAE (Economic Activities Tax), which add up to a total of 900.000 euros, while another 535.000 euros come from the Environmental Compensation Fund that the Xunta de Galicia manages thanks to the wind tax.
While the city council benefits from this income, Mayor Manuel Requeijo has expressed concern that the real winners continue to be the large multinationals. According to estimates by the Galician Wind ObservatoryMuras wind farms generate annual profits ranging from €70 to €90 million, but only a small percentage of that figure returns to the local community.
Despite the economic benefits, the town continues to lose population, raising questions about the long-term sustainability of the economic model based almost exclusively on wind energy. Environmentalists, such as the Association for the Ecological Defence of Galicia, have also expressed concern about the environmental impact of wind farms, criticising the exploitation of natural resources without clear compensation for affected communities.
Future challenges and stopping rural exodus
Beyond the money raised, the Muras council is clear that its biggest challenge is to stop depopulation and avoid the closure of essential services such as the school. Although aid for electricity consumption has attracted some families to consider moving to Muras, the lack of stable employment and adequate housing has slowed this trend.
Mayor Requeijo has insisted that the long-term solution lies not only in providing economic benefits, but in generating sustainable development that attracts industrial and labour investment. In the meantime, the council is using the available funds to improve infrastructure such as street lighting and water networks, increasing the quality of life for current residents.
In the end, Muras has opened a door to debate about New ways of managing the benefits of natural resourcesAlthough wind power will not change the world overnight, in Muras it has already provided relief for many families who now pay a fraction of what they used to for electricity.