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Spain – The price of electricity will fall by 60% on Sunday and will be below 22 euros/MWh

Sonne, Wind und Nachwachsende Rohstoffe Energy mix: Wind, Sun and renewable resources

The price of electricity will fall this Sunday by 60% to 21.49 euros per megawatt hour (euros/MWh), the lowest figure since last Sunday, January 8, when it barely exceeded nine euros per month, according to the results of the auction held in the wholesale market. The final average price is the result of adding, to the 22.05 euros/MWh registered in the wholesale market, the provisional adjustment that the beneficiaries of the gas cap have to pay to compensate the plants that use this material to generate electricity, which will settle tomorrow at a negative rate of 0.56 euros/MWh.

Without the so-called Iberian mechanism, which limits the price of natural gas for electricity generation, the wholesale price for tomorrow would be 51.3 euros/MWh, that is, about 30 euros higher, according to data from the Operator of the Iberian Electricity Market (OMIE) and the Iberian Gas Market (Mibgas).

In this calculation, the new gas cap of 45 euros is already applied, which will be in force throughout January. By time slots, and excluding the adjustment, electricity will reach its highest price between 8:00 p.m. and 9:00 p.m., with 50.56 euros/MWh; and the lowest, between 04:00 and 05:00, when its price will be 3.10 euros/MWh.

After this new decrease, the price of electricity for tomorrow will be 90% lower than that of a year ago, when it stood at 219 euros/MWh, and will be at lower levels than those registered in most neighbouring countries even without the application of the cap to the gas. Thus, in Italy the average price will be 145.48 euros/MWh; in France, of 34.88 euros/MWh; in Germany, of 9.26 euros/MWh; and in the United Kingdom, of 101.48 pounds/MWh (about 114 euros/MWh).

Thia srticle was originally published on Público