2023-11-01 16:37:58
The storms suffered in the final stretch of the month of October have allowed generation with renewables to increase significantly, especially due to wind power, which has plummeted electricity prices to annual lows. This Thursday the average electricity price for regulated tariff customers will fall 2.4% compared to Wednesday to 4.42 euros per megawatt hour (MWh), a new record so far this year.
Data from the Iberian Energy Market Operator (OMIE) indicate that by time slots, the maximum price, of 10 euros/MWh, will be recorded for three hours – between 08:00 and 09:00 and between 19:00 and 21:00 -, while that the minimum, of 0.06 euros/MWh, will occur between 04:00 and 05:00 hours. Thus, the ‘pool’ will register a new minimum, after 4.53 euros/MWh this Wednesday, for a day so far in 2023. We would have to go back to the last day of 2022, when it marked 2.65 euros /MWh, to find a lower electricity market price.
These gusts of wind have slowed the upward trend in energy prices in recent months. In fact, the average of the electricity market in October closed at 90.14 euros/MWh, well above the price that the lulz will set this Thursday but already 13% lower than the 103.34 euros/MWh average for September .
Compensation to the gas companies would be added to the average price of the ‘pool’, which has to be paid by the consumers who are beneficiaries of the measure, the consumers of the regulated tariff (PVPC) or those who, despite being in the free market, They have an indexed rate, but it is once again at 0 euros/MWh, a situation that has been repeated since February 27.
The so-called ‘Iberian exception’ was extended until December 31, following the agreement reached by Spain and Portugal with the European Commission. Thus, it was extended for seven months, until the end of this year, and it was not excluded that it could be extended for longer if said framework was also increased.
Specifically, the agreement not only represented an extension of the Iberian exception that was already applied, but also implied some adjustments to accommodate it, such as the price reference, which until then had increased by five euros per month, and became softer. .
In the original agreement, the aforementioned reference price for gas had an average value of 48.8 euros/MWh: it was 40 euros/MWh for six months, rising 5 euros/MWh each month thereafter. It has increased by 1.1 euros/MWh since last April, ending at 65 euros/MWh.
Currently, the mechanism has not had any effect on the marginal matching processes in the wholesale markets since the end of February due to the drop in the price of natural gas below the thresholds set for its application, but, if necessary, the extension will allow maintaining a reasonable price, not so dependent on the evolution of natural gas.
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