The price of electricity falls by 18% this Sunday, to 69 euros, and will cost almost 0 euros for four hours

September 21 () –

The average price of electricity on the wholesale market will fall by 18% this Sunday compared to Saturday, to 69.91 euros per megawatt hour (MWh), moving away from the levels of 100 euros that have characterized the week, and will reach a price of almost 0 euros for four hours.

Specifically, between 1:00 p.m. and 5:00 p.m. the price in the pool will be 0.01 euros/MWh or will barely cost a couple of euros, according to provisional data from the Iberian Energy Market Operator (OMIE) collected by Europa Press.

The highest price for the day will be between 9:00 p.m. and 10:00 p.m., when the MWh will rise to 114.53 euros.

It is also worth noting that the average price of electricity in September is 77.62 euros, which represents a decrease of almost 15% compared to the previous month, thus breaking the upward trend that began in June, after the very low levels of the first months of the year, especially in spring.

Specifically, this drop in the price of electricity has coincided with the growth of wind power generation compared to the summer months – when it falls due to the anticyclonic situation – due to the arrival of storms, which has come earlier than in other years, according to analysts from the ASE group.

Wind power generation has thus risen to an average of 149 gigawatt hours (GWh) per day, which is 22.8% more than a year ago and 18.4% higher than its average over the last five years.

There has also been a decrease in electricity demand (-6.4%) compared to August, due to the drop in temperatures and tourist activity. At the moment, demand is 2.4% below its average for the last five years.

Back to the price for this Sunday, it is worth remembering that, despite this time slot in which electricity will be almost free, these prices are not exactly transferred to the bill at practically zero euros, since there are fixed costs for the electricity consumer, for tolls, charges and system adjustments.

In this regard, it is worth remembering that the ‘pool’ does not exactly represent the final amount of the price of electricity for a consumer covered by the regulated tariff, since with the entry into 2024 a new method of calculating the PVPC was adopted, which incorporates a basket of medium and long-term prices to avoid strong fluctuations, without losing the short-term price references that encourage savings and efficient consumption.

In this way, the proportion of the link to the pool price will be progressively reduced to incorporate the references of the futures markets, so that these represent 25% in 2024, 40% in 2025 and 55% from 2026.