MADRID, 30 OCTOBER () – The average electricity price on the wholesale market, which is one of the criteria for consumers with regulated tariffs or PVPC, amounted to approximately 68 (MWh) in October, approximately 6% cheaper in comparison. It became. compared to the previous month thanks to wind power generation.
The drop in the “pool” price reached its lowest level since June, when it hit $56.08, but it was $58.4 as multiple rains and winds hit the Iberian Peninsula this October, causing a surge in renewable energy production. It coincided with the generation of % of the moon’s power.
According to the history compiled by EFE, MWh bid farewell to October at an average of 68.54 euros, the fifth highest of the year after August’s 91.05 euros. January is 74.09 euros. In September it was 72.62 euros and in July it was 72.31 euros.
This 68.54 is five times higher than last April’s 13.67 euros, which remains the lowest cost ever seen on the wholesale market, which has been operating since 1998. However, when compared year-on-year, electricity prices fell by 24%.
Twice it exceeded 100 euros.
Analysis of the latest auctions shows that MWh exceeded the 100 euro threshold only twice: on Monday 14 October at 104.17 euros and this Thursday at 101.17 euros. However, these prices are below the annual high of 120.37 set last Thursday, August 29th.
Of course, I got above 90 for up to 5 sessions. Tuesday 1st October (€97.9), Wednesday 2nd October (€93.59). Friday the 4th (98.98 euros). Friday the 11th (€90.66), Monday the 21st (€93.63). Conversely, the lowest price recorded this month was on Sunday the 6th at 21.96.
Once again, negative minimum prices (-0.01 euro between 1pm and 4pm on Sunday the 6th) and times of zero euro (between 2pm and 5pm) were found in the “pool”. Saturday the 5th from 3pm to 4pm, Sunday the 13th from 2pm to 4pm
Since April last year, when this phenomenon began to gain traction, at least one session each month has seen several hours of zero or negative prices in the “pool.”
APPA Renovables estimates that 10% of the time in 2024 will end with zero or negative prices, and around 1,800 hours will end with prices between zero and 10 euros, a level that will increase investment in renewable energy. is considered insufficient to be profitable, and this level could lead to commitments to finance renewable energy. Upcoming projects.
Wind energy, the leader in the “mix”
Daily statistics for the Spanish Peninsula’s power system published by Red Eléctrica (BME) show that by Wednesday of this week, renewables generated 58.4% of electricity in October, with wind power accounting for 27.4%. Masu.
In the first two weeks alone, wind power production was 147% higher than a year ago, according to data maintained by ASE Group. In fact, the continued arrival of storms since early September has allowed the technology to maintain a much higher generation average than normal this time around.
In the opinion of this source, advances in the intermittent technologies wind and solar power are transforming the Spanish electricity market, and prices are increasing the dependence on these, resulting in It is said that conditions are changing, which is affecting volatility.
Therefore, when the combination of wind and solar reaches its maximum impact, prices will fall. The price per solar hour from January 1st to October 16th was 35.43 euros, significantly lower than 80.26 euros in 2023.
At a general level, nuclear power accounts for 22.6% of the total, making it the second power generation technology. The next two renewable energies are hydropower at 14.4% and solar power at 14%.
VAT relief measures continue
Due to the average wholesale market price in October, the VAT on your next electricity bill will continue to be 10%.
This is possible because the government sets this reduced tax rate year-round, but with exceptions. If the “pool” average does not exceed 45 in a given month, the tax for the following month increases to 21%. .
This exception occurred in March, April, May and June, with consecutive months in which MWh ended below the €45 barrier.
Looking ahead to the coming months, OMIP operator electricity futures prices are on an upward trend and are expected to reach EUR 81.65 in November. The average in December was 76.60 euros, and in the first quarter of 2025 it was 71.25 euros.
