this maximum limit of the electricity market It will be in about four weeks 4,000 euros per megawatt hour (MWh) instead of the current 3,000 as reported by EL PERIÓDICO, a newspaper belonging to the same group as this media. This happens when you expect it. Spain and Portugal may impose an upper limit on the gas used to generate electricity to limit prices in the wholesale electricity market. In any case, does setting a higher limit mean that this stratospheric figure can be reached? Does this affect the bill users pay?
Is it a political issue?
The limit is a technical issue, not a political issue, or in principle not intended to cause prices to go crazy. It provides flexibility to prevent the market from running when a certain price level is reached. European regulations, Market price exceeds 60% of the specified maximum value (in this case 3,000 euros per megawatt-hour) “at least market time unit (hour) in a day over a region individual auction or in several areas auction ends change this is the highest price. And this is what happened for the first time in Europe on April 4, when the price of electricity in the French wholesale market was close to 3,000 euros per megawatt-hour between 7 and 9 am, with prices between 2,712.99 and 2,987.78 euros. for megawatt-hour drop in temperatures and break in half French nuclear power plants.
How is it applied?
After this hourly departure in the French market, the mechanism came into play, forcing European markets to increase this maximum price at this time. €1,000 per megawatt-hour. Therefore, it has to increase from the current 3,000 euros to 4,000 euros from the “five weeks following” when the set threshold is exceeded. This will be May 9th. Something akin to mortgages before the judgment of floor items: having a ceiling doesn’t mean it will be reached, even though it’s a possibility.
Also is there a floor?
this minimum price a figure that will remain unchanged at -500 euros per megawatt-hour, a figure that no other country has come close to at the moment; although there are many Germany, France or Belgium They knew about the fact that they had negative hourly average prices, and even one day negative average daily prices. Symbolic prices began to be produced in Spain at a time when there was a large contribution from Europe. renewable energiesis is.
Have these prices been reached in Spain?
in Spain, highest price recorded on March 8, the day reached in one hour. highest average daily price To date (€544.98 per megawatt), close to €700 per megawatt hour between 7pm and 8pm, an unprecedented figure a day later. natural gas price also Iberian gas market hits record at the end of 214.36 euros per megawatt hour, ten times higher than the natural gas average Since the launch of this market.
Is it valid in Spain?
Limit price in the Spanish wholesale market until July last year The maximum was 180 Euro MWh and the minimum was 0 Euro. accepted as iberian anomaly this is not exceeded By September 16, the maximum was further and the wholesale market reached 188.18 euros per megawatt hour. The historical record up to that date was 103.76 euros per megawatt hour on 11 January 2002. The European Commission had been ‘following’ Spain for some time to change these limits and thus harmonize all European markets. The National Markets and Competition Commission (CNMC) rated the proposal as “adequate” because it “allows for greater alignment” with the rest of the euro.
Does it affect the receipt?
The same as any price exiting the electricity generation market. The maximum limit gives more room to upgrade, but that doesn’t mean it will or should. In any case, the price in the wholesale market represents only a fraction of the price paid by regulated tariff (PVPC) holders, converted into cents per kilowatt-hour. Then there are fees and tolls as well as taxes. The price of mayositas for this Saturday is 241.59 Euro MWh.