Electricity price in Spain to drop 48% for Wednesday’s holiday

Electricity price in Spain to drop 48% for Wednesday’s holiday

The price of electricity in the wholesale market, or ‘pool’, will fall this Wednesday, December 8, to €108.73/MWh. Although, it must be taken into account that prices are always reduced on holidays, such as tomorrow.

With tomorrow being a national holiday, economic activity decreases, resulting in a lower energy demand. For the second time in 21 days, the price will drop below the €200/MWh mark, a price that was achieved in almost 70 per cent of October.

In November, 45 per cent of the days went above €200, and so far, in December, six of the first eight days have risen above €200/MWh.

Wednesday’s drop in price will make energy 56 per cent cheaper than last Wednesday, but it will still be more than triple the cost of the corresponding day of last year. On this same date in 2020, electricity stood at €27.48/MWh.

December’s average price so far is €193.40/MWh, similar to November’s €193.42 average. October recorded the most expensive energy prices in history when the average reached €200.06/MWh.

According to data provided by the Operator of the Iberian Electricity Market (OMIE), the maximum price for tomorrow, Wednesday 8, will be between 8pm and 9pm, reaching €238.75/MWh. Between 5am and 6am, it will be €14/MWh.

Price escalation is affecting a large part of Europe, and is being blamed, among other factors, on the rising cost of gas in international markets. This gas is used in combined cycle plants and sets the market price in most hours, along with the increase in the price of carbon dioxide (CO2) emission rights.

Spain’s average electricity price will be lower tomorrow than in many other European countries. In Italy it will cost €245.1/MWh; France €247.43; the United Kingdom £200.60 (€235); while in Germany, it will average €184.06. Portugal shares the market with Spain, so registers the same prices.

Finland will record the highest average price of electricity on the continent, where energy will cost a whopping €439.69/MWh, more than four times higher than the Iberian market, as reported by malagahoy.es.

Image courtesy of https://www.abelectricians.com.au/electrical-blog/.

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