Electric Price Drop in Spain Thanks to Wind Energy

EU to skim energy company revenues but no price cap

Price Drop: Spain's electric prices fall thanks to wind energy rise. Image: Erik Wilde

SPAIN’S wholesale electric prices have dropped to their lowest levels since December 2019 thanks to an increase in wind energy.

Consumers in Spain signed up to regulated tariffs are most likely to benefit from the electric price drop, which could see it become almost free to use washing machines or charge electric cars early in the morning.

Those on fixed electric contracts will not benefit from the price drop.

The end of January saw wholesale prices fall to €4.19 per MWh, despite starting the month at €94.99.  Experts believe the price drop is in part down to the windy weather Spain has experienced in recent weeks.

Storm Justine is expected to further boost wind energy production, possibly breaking records both for daily production and for peak output.  The previous record was set on December 28 when wind energy reached 404 GWh.

The storm currently making its way across Spain is expected to bring 20 GW of wind this weekend, and the electric price drop will mean Spain and Portugal will have the cheapest wholesale electric prices in Europe.

Prices in Germany and France currently stand at €48 per MWh, the United Kingdom at €60 per MWh, and Scandinavian countries stand at €45 per MWh.

Storm Justine is expected to see gusts of wind of up to 90 kilometres per hour in some places.

According to Beatriz Hervella, a spokesperson for the State Meteorological Agency AEMET, January has been a record-breaking month for storms in Spain.

“Never before has there been a month with so many incidences. In fact, we have to go back to February 2020 to even find four storms throughout one month. It is a record.”

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