Coal is Spain's most plentiful indigenous energy source, with reserves of 584 million short tons (Mmst) in 2003. The country produced 22.7 Mmst in 2003, while consuming 45.6 Mmst, relying on imports for the balance. Overall coal consumption has remained relatively flat over the past decade, with Spain's electricity sector constituting the largest share. Private companies produce most of the coal in Spain, though the single-largest company is Hunosa, owned by the government through the Sociedad Estatal de Participaciones Industriales (SEPI) holding company. Similar to other EU members, Spain’s coal industry has struggled to remain competitive vis-à-vis imported coal and other energy sources.

Portugal has not produced coal since its last mine closed in 1994. In 2003, Portugal consumed 5.9 Mmst of coal, mostly for electricity generation.