It will be the lowest since February 2021, with the cheapest hour from 4 a.m. to 5 a.m. (0.57 Euro MWh) and the most expensive between 7 a.m. and 8 p.m. (21.78 Euro).
The average price of electricity for regulated tariff customers connected to the wholesale market is down 66.13% this Friday compared to Thursday and stands at 5.47 euros per megawatt hour (MWh), the lowest level since February 20, 2021 , when it amounted to 2.02 Euro/MWh. It will be the fourth lowest price since the beginning of last year, after the EUR 1.42/MWh of January 31, 2021, the EUR 2.02/MWh of February 20, 2021 and the EUR 4.19/MWh on January 30, 2021.
In the auction, the average price of light on the wholesale market for this Friday is 6.02 euros/MWh. The minimum price of 0.57 euros/MWh is given between 4 and 5 p.m., while the maximum price is recorded between 7 and 8 p.m. at 21.78 euros/MWh, according to preliminary data from the Iberian Energy Market Operator ( OMIE).
The price of electricity is falling thanks to the high production of wind energy in recent days, after falling in the past, also due to the abundant rainfall that made hydropower production cheaper. Since the weather forecast is for the wind to continue, the price of electricity is likely to remain low for the rest of the week.
The final average price is the result of applying to the ‘pool’ price the provisional adjustment that the beneficiaries of the gas cap must pay (consumers of the regulated tariff or those who are on the free market and have a tariff that is indexed is on the wholesale market) to compensate for the power plants that use this material to generate electricity, which amounts to -0.55 Euro megawatt hours. If there were no cap on the price of gas to generate electricity – the so-called ‘Iberian exception’ – the price of electricity in Spain would average around €50.53/MWh, ie about €45 higher. The ‘Iberian Mechanism’, which entered into force on 15 June, limits the price of gas for electricity generation to an average of EUR 48.8 per MWh for a period of 12 months and thus covers the coming winter, a period in which energy prices will be higher. are expensive.
This mechanism was approved after the price of light reached a maximum of 700 euros per megawatt hour in March this year. Despite the measure, the price of electricity has skyrocketed for most of the year. The ‘Iberian exception’ sets a path for natural gas for electricity generation starting at a price of €40/MWh in the first six months, and then a monthly increase of €5/MWh until the end of the measure.
On June 15, the so-called ‘gas cap’ came into force, limiting the price of gas for electricity generation in both Spain and Portugal. This gives a result for the average price of the daily ‘pool’ (wholesale market) to which the daily allowance for gas-fired power stations must be added.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
