The price of electricity in the Iberian market is projected to rise by more than 7 percent this Tuesday, reaching around 287 euros per megawatt hour (MWh). This marks the highest level since October 4, when 289 euros per MWh was recorded in the wholesale electricity market results. The movement reflects ongoing dynamics in supply and demand, with traders watching for the next hourly shifts and the overall weekly trajectory in Europe’s energy sector.
Additionally, the wholesale price for tomorrow already includes the stabilization mechanism that caps the cost of natural gas used to generate electricity. This policy, coordinated by Iberian market operators, places the total around 333 euros per MWh. That figure translates to roughly 45 euros above other benchmark expectations, underscoring how price controls and market structure interact in real time within the Iberian energy framework.
The overall average price for the day is the net result of combining the temporary adjustment paid by electricity users exposed to the gas ceiling with the baseline 153.4 euros per MWh observed in the wholesale market for Tuesday. The adjustment is designed to support power generation facilities relying on gas while maintaining market transparency. In practical terms, the final average will settle near 134 euros per MWh once these factors are accounted for, illustrating how regulatory measures and market conditions converge to define daily costs for consumers and suppliers alike.
When considering time blocks and excluding the adjustment, the highest hourly price is forecast between 20:00 and 21:00, reaching about 195 euros per MWh. Conversely, the lowest price window is anticipated between 7:00 and 8:00 in the morning, with about 131 euros per MWh. These patterns highlight the predictable diurnal structure of electricity demand and the corresponding response from price formation in the wholesale market, even amid volatility in fuel and carbon markets.
Following this uptick, the electricity price on Tuesday stands about 37 percent higher than a year earlier, with an observed level near 210 euros per MWh. This year-over-year change reflects shifts in generation mix, fuel costs, and regulatory frameworks that influence both the short-term price movements and the longer-term outlook for the Iberian energy system.
Despite the rise in Spain, domestic prices still remain below levels observed in several neighboring countries, particularly when considering the throttle cap effect. In neighboring markets, the average price in France is forecast at around 418.4 euros per MWh, Italy around 401 euros per MWh, Germany about 386.4 euros per MWh, and the United Kingdom near 316 pounds per MWh, roughly equivalent to 367 euros per MWh. Taken together, these comparisons illustrate how cross-border market conditions and currency dynamics shape relative affordability and competitiveness across Western Europe, even with similar policy instruments in place.