The windy weather conditions that have hit a good part of the Peninsula this Thursday now leave electricity prices plummeting, the cost of which will be minimal this Friday in the central hours of noon.
Specifically, between 3:00 p.m. and 5:00 p.m., the price at which customers who are covered by the regulated market will pay for electricity (approximately a third of the total, with the PVPC rate) and those on the free market referenced to the daily ‘pool’ It will be just 1.64 euros/MWh. This is one of the lowest hourly references in recent months, although at that price we must always add the rest of the costs that increase daily electricity.
This drop in prices is possible due to the effect of the winds and rains derived from the storm Aline that has crossed Spain in the last few hours. In this way, yesterday the generation of wind production exceeded 57% of all the electricity consumed in the system, a record compared to the average contribution of these plants, which is at 22% so far this year, according to REE.
In fact, the average price of electricity for regulated tariff customers linked to the wholesale market will be reduced by almost 66% compared to this Thursday, to 23.12 euros per megawatt hour (MWh). By time slots, the maximum price, of 74.99 euros/MWh, will be registered between 8:00 p.m. and 9:00 p.m.
The lowest since April
In this way, the price of electricity will register its lowest level since mid-April, when it reached 21.77 euros/MWh. This decrease is driven by the arrival of storms to the Peninsula, which are thus leaving strong winds – giving greater prominence to wind power – and precipitation.
Thus, electricity will register a total of fourteen hours this Friday with prices below the level of 10 euros/MWh, while throughout the day there will be no hour in which it exceeds 100 euros/MWh.
So far in October, the electricity market average stands at 105.5 euros/MWh, compared to the 127.21 euros/MWh that the pool registered in the same month of 2022.
Currently, the Iberian mechanism has had no 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 maintain a reasonable price, not so dependent on the evolution of natural gas.
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