Electricity price reaches its highest level in six months due to rapidly increasing use of gas power plants

HE light price climbed in midsummer maximum levels since the beginning of the year. wholesale market electricity – electricity companies, their distributors and traders According to the records, the next day’s energy purchase and sale reached an average of 96.05 euros per megawatt hour (MWh), up 6.2 percent from July, reaching its highest price since February of 133 euros. Iberian Electricity Market Operator (Omie).

Also known as the wholesale market swimming pool There was tension in the energy sector due to the tension in the middle of summer. greater weight of the production of gas plants and for less contribution from the wind (something common in the summer) and hydroelectric power stations due to drought, but far from last year’s price peaks amid the energy crisis. The average price of electricity in August 2022 was almost 155 euros per MWh, 69% more than this summer.

during the month of august Demand for electricity in Spain fell by 1.1 percent According to data from electrical system manager Red Eléctrica de España, despite consumption increases recorded during the heat waves of recent weeks and increased air conditioning use, the decrease in consumption was 1.3% compared to last year’s levels (not taking into account the effect of temperature and working hours).

However, it directly determined the price of electricity and the weight of different technologies in production during the peak hours of consumption (a 1.5% increase was recorded between 20:00 and 22:00 when the demand was highest). electric.

burning gas

Electric companies and REE increase electricity use gas stations to meet the intense demand and to provide the least contribution from other production technologies. Combined cycles, which are gas-fired power plants to generate electricity, were placed as the main source of generation in the country in August and were effectively connected to nuclear power plants, providing 21.2% (in the 1990s days) of all electricity production that month. due to rising temperatures due to heat waves, the weight of gas power plants has increased to between 25 and 30% of total national production.

The gas sector underlines the strategic role of combined cycles in ensuring security of supply and eliminating interruptions in renewable energy production in the country at times when other technologies reduce their contribution and demand peaks.

Further generation of combined cycles coincided with the increase in natural gas market prices in August as well as the increase in the cost of CO2 emission rights, raising the price of the electricity market. Spanish Mibgas, the wholesale gas market, stood at just 25 euros at the beginning of summer, up to around 40 euros per MWh at various times in August, with CO2 emissions rights approaching 90 euros per tonne.

“On days when volatility is high and high temperatures and wind generation are low throughout the month, the support it provides to electricity generation due to the expensiveness of gas has pushed the price of the electricity market up,” the analysts said. energy consulting Grupo ASE. “Compared to the European energy crisis, where electricity prices reached 500 Euros per MWh in August last year, the current situation is more controlled. However, gas and electricity prices continue to hover well above their historical averages.”

HE The wholesale electricity market determines prices through a marginal systemProducts that use the latest and most expensive technology necessary to meet demand around the clock mark the price of others. Therefore, the increase in the production of gas power plants increases the cost of electricity. The evolution of the wholesale electricity market price directly conditions the bills of the 8.5 million households that have signed a regulated electricity tariff agreement, called the voluntary price for small consumers (PVPC).

Sun ‘Sorpasso’

Solar power plants confirmed during the summer that wind power is the largest source of renewable energy. After solar production increased by 35% last month, photovoltaic solar plants were assembled in August for the third month in a row with more production than wind power. Photovoltaics accounted for 18.6% of all national production last month, compared to 18.3% for wind energy.

The rapid commissioning of new solar power plants is key to the increased contribution to the country’s production structure. In the Spanish market, solar installations grew by almost 23% last year, adding more than 4,100 megawatts (MW) of new energy in total. With a total operating power of 22,380 MW, photovoltaic is the third technology with the highest installed capacity in Spain, after wind (30.370 MW) and gas power plants (26,250 MW).

These figures for solar power generation and accumulated energy do not include data on the explosion in solar power plants. electricity self-consumption, which doubled its capacity last year and continued to deploy, albeit more slowly, this year. The renewable energy sector is aware that the installation of new plants is starting to slow this year as electricity prices have dropped and public subsidies have been halted. A slower rate with uneven impact across different types of customers: While large facilities in industrial companies remain strong in their installations, it is noticed that expansion in the residential segment is slowing down.

Source: Informacion


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