On Wednesday, the electricity price in the Iberian market is projected to edge up slightly by 0.38 percent, settling at 273.9 euros per megawatt hour (MWh). The adjustment is intended to be covered by gas cap beneficiaries to offset costs for power plants that rely on this fuel, based on the auction results from the wholesale market, also known as the pool.
Data from the electricity market operator OMIE and the Iberian Gas Market (Mibgas) indicate that the wholesale electricity price, paid by consumers at regulated rates, is about 29 euros lower than the 302.51 euros per MWh that would have been charged if the gas price had not included the cap for generation. [Citation: OMIE, Mibgas] This means the price without the gas cap would be nearly half of the peak seen in the past, roughly 50% lower than the record level reached on March 8 (544.98 euros per MWh), a spike that occurred shortly after the start of the Ukraine conflict.
In a landscape characterized by energy volatility, Europe continues to experience elevated electricity costs across major economies. Spain is sharing in this trend with Wednesday’s bid averaging 273.9 euros per MWh, while other nations show divergent trajectories. Italy is expected to see daily averages around 432.58 euros per MWh, with short-lived peaks near 554.27 euros toward year-end. France is anticipated to average around 336.05 euros per MWh; Germany around 335.08 euros per MWh; the United Kingdom is projected at approximately 278.8 pounds per MWh, equivalent to about 330 euros at current exchange rates. Portugal, benefiting from the Iberian market arrangement, should see an auction price almost the same as Spain, though occasional disparities arise due to local production differences. [Citation: European energy market data, 2024–2025]
Auction and setup
If wholesale market results are considered without the trim electricity, prices would hold steady around 143.99 euros per MWh on Tuesday and 144.78 euros on Wednesday, but the gas-cap beneficiaries will share the cost to compensate power plants that use the restricted fuel. [Citation: OMIE, Mibgas]
Prices shift with time zones and, at times, do not always reflect the adjustment noted above. The daily maximum tends to occur between 21:00 and 22:00, around 171.68 euros per MWh, while the minimum typically appears between 15:00 and 16:00 at approximately 122 euros per MWh. [Citation: Market hourly data, Iberian region]
Additionally, the costs of adapting gas-fired plants to changes in fuel mix are variable and depend on the volume required by the system and its price. These adaptation costs affect households and beneficiary businesses alike.
For this Wednesday, the average adjustment passed to consumers is estimated at 129.12 euros per MWh, resulting in a final price of 273.9 euros per MWh, which is more than double the level seen a year earlier, when prices reached around 144.82 euros per MWh. [Citation: Iberian energy price reporting]