Jul 21. () –
The average daily price of the wholesale electricity market, the so-called ‘pool’, for this Monday will more than double – specifically, it will rise by 161% – compared to this Sunday, reaching 79.53 euros per megawatt (MWh) after prices eased this weekend to the level of 30 euros/MWh.
Specifically, the average for the ‘pool’ on Monday will be 79.53 euros/MWh, with a maximum of 133.58 euros/MWh, between 9:00 p.m. and 10:00 p.m., and a minimum of almost 55 euros/MWh, between 11:00 a.m. and 12:00 p.m., according to data from the Iberian Energy Market Operator (OMIE) collected by Europa Press.
In this way, the price of electricity begins the week by resuming the upward trend that characterized the week that is now ending, a period in which the context of the heat wave led the raw material to climb on Thursday and Friday to around 100 euros, highs not seen since the beginning of the year.
However, this weekend – a period in which there is less demand and consumption falls – electricity prices became cheaper due to the drop in temperatures, reaching 30.4 euros/MWh on Sunday, a day on which prices at 0 euros/MWh or even negative prices are recorded between 9:00 and 20:00.
The heat wave that has now left us, the first with intensity this summer, has thus reaped especially high prices for this week that ends, taking into account the behavior of the electricity market in 2024, in which in April the first negative prices in history were recorded in the ‘pool’ due to the majority presence of renewables – solar, wind and hydraulic – in generation, which have led to prices collapsing at many times.
Specifically, April ended as the month with the lowest electricity price in history since the wholesale market was launched, with an average of 13.67 euros/MWh.
AVERAGE OF ALMOST 65 EUROS/MWH SO FAR IN JULY
So far in July, the daily wholesale market price has stood at 64.4 euros per megawatt hour (MWh), 14.8% higher than last month.
Thus, the upward trend that began in June has continued, after a spring with extraordinarily low prices, but slowed down by the impact of photovoltaic energy.
According to analysts at Grupo ASE this week, this is a very moderate increase because in the central hours of the day prices have fallen by 24% compared to June.
Specifically, photovoltaics has produced 26% of electricity, leading the generation mix, covering up to 50% of demand in the central hours of the day and thus lowering the price during solar hours, softening the upward trend in prices.
However, analysts at the consultancy warned that weather forecasts for the end of the month indicate that wind power generation will slow down and remain below average, while temperatures will rise sharply, increasing demand by 6% and causing a spike in electricity prices.
This increase in the ‘pool’ will affect customers of the regulated electricity market or PVPC, who are impacted by these daily price fluctuations.
It should be remembered 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 force of 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.
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