The price of electricity in Spain increased three times less than in Europe

Two months after launch upper limit on gas price in electricity market It can be said that the mechanism is working. instrument created for reduce the contagion of the rise in gas prices electricity bill managed to control this rise, albeit less than expected, and Spain ceases to be one of the most expensive countries, to be the cheapest. The price of electricity is now rising in Spain three times less than the average of the main European countries. Although the latter is also affected low fuel cost because in recent weeks the Iberian gas market (Mibgas) has been separated from the European reference market (Dutch TTF). In historical comparison, electricity is still ten times more expensive Before the start of tensions with Russia.

Between June 15 and August 15, the price of electricity in the Spanish wholesale market set a record. 254.74 euros per megawatt hour (MWh) –the sum of the ‘pool’ price and compensation–, 35% higher than the previous month’s average According to data from the Iberian market operator OMIE, until the entry into force of this mechanism (May 15 – June 14). Meanwhile, the average increase in the six main European countries (France, Germany, Italy, Belgium, Netherlands and United Kingdom) was 102%. In other words, the price increase in Spain is three times the average of these countries. “I have always rated Countries between the first and second part. In second place was always the United Kingdom, Italy and Spain, and in first place the rest. Well, France fell to Second and the United Kingdom and Spain came first”Explains the energy expert and consultant of Menta Energía, Francis Valverde.

How high would the price be without the cap? It is difficult to count. By predictions If there was no ‘Iberian exception’ with this method, which coincides with the daily calculations published by the Ministry of Ecological Transition, an average price of 299.46 Euro MWh in the last two months could be mentioned, 17.7% higher than the current one. In any case, these are accounts on paper and are not a true simulation of the market, so they need to be careful. “From the start, I believe generators don’t bid the same way. While I can’t prove it, if I were a generator and the rules changed, I would change the way I bid,” Valverde warns.

And what kind of monthly invoice? According to the calculations of the energy market expert and professor at the Universidad Pontificia de Comillas, Joseph Louis Sancha’s photo.A regulated tariff (PVPC) consumer who pays a bill of about 100 euros in March will pay 81.23 euros in July, 14% less than you would pay without an upper limit.

Experts agree on this prices are not as low as expected because the mechanism came into play in the midst of a “perfect storm” created by mysticism. drought and lack of windhigh demand for heat waveThe increase in exports to France (not including compensation) and the “unexpected” effect of the commissioning costs of the power plants combined cycleAs Afry’s advisor explained, Javier Rebellion. “When the wind returns and water improves its functioning towards expected prices, around 130 MWh in the ‘pool’ (average price of the auction in the last two months was 145 euro MWh), but not 50. or 60 euro MWh” provides Revuelta. prices remain high. This winter, he explains, gas will be “very, very expensive”, but then Europe will have to buy gas again to fill up the tanks, which will keep oil going. price pressure.

nor did it help cogeneration plants (Large industrial thermal power plants that produce steam and electricity by burning gas and sell the surplus to the system) don’t get gas compensation (The difference between the actual price, which averages 145 Euro MWh in these two months, and the upper limit of 40 Euro MWh), as combined cycles doAdd Carlos Martin Grana operations manager energy combination. “Cogeneration plants have to produce at a loss – they pay the market price of gas (that’s 145 Euro MWh), but only 40 Euro MWh of the cap is paid without compensation – and therefore many decided to stop. And more is produced with gas instead,” adds Graña. Cogeneration produced about 11% of electricity, up from 4.3% in July.

However, even with a regular ‘pool’, unlimited gas, experts agree electricity price will fall Due to the higher fuel price in Spain (Mibgas) than in other countries divided European reference (Dutch TTF). Currently 35% lower. The reason is “The capacity of the Iberian Peninsula to supply itself with liquefied natural gas what makes us Less at the mercy of gas drop and cuts from Russia as in other countries”, explains Aleasoft’s director of analysis and modeling, Oriol jumped. “After all, all markets are financial. And as long as you have a ‘commodity’ (raw material) energy it can cost you 1, 2 or 3, but when not, the price is whatever you want”Add Carlos Martin Grana.

Source: Informacion

Popular

More from author

Archaeologists find a medieval castle with a moat under a hotel in France 02:02

Scientists from the French National Institute for Archaeological Research (INARP) have discovered the ruins of a 16th-century castle beneath the historic Hotel Lagorce in...

Russian developers changed the name of the game because of Polish partners 00:34

Russian studio WATT Studio has reintroduced its adventure puzzle game about skateboarder Hannah and announced that its name has been changed. The project,...

Chanel broke lease agreements in Russian shopping malls 01:03

Chanel is negotiating with the owners of Russian shopping malls to end its presence in Russia. The French brand plans to release rental...

Goalkeeper Fedotov will join Philadelphia until the end of the season 28.03.2024, 23:27

Former CSKA Moscow goalkeeper Ivan Fedotov will continue his career in the Philadelphia Flyers of the National Hockey League (NHL). The portal reports...