Electricity prices fell in April as renewable energy surged

Average price of electricity on the wholesale market (pool) In April it was 13.7 euros. megawatt hour (MWh), which will leave check what families pay 36 euros. The month ends with the lowest electricity price since the wholesale market began in 1998 due to the rise of photovoltaic power. Until now, this record was held in February 2014, when the average electricity price was 17.12 euros per MWh. The light has come to cost March 2022 (after Russian invasion of Ukraine) almost 300 euros on average in the wholesale market.

Three months of collapse

Electricity is stored for three months at unusually low prices. In February it was hydraulic generation, in March it was wind, and in April it was photovoltaic. Marcos J. Lacruz, president of the Association of Renewable Energy Companies C. Valenciana (Avaesen), notes that Low prices will become increasingly common due to Spain’s commitment to green energy. Spain’s installed photovoltaic capacity (26,000 MW) increased by 20.6% compared to last year (21,562 MW).

Avaesen President reports that There were days in April when renewable energy covered 82% of demand.. “Five years ago, thinking about this figure was a dream. Renewable energy sources offer cheap energy from which industry and society benefit. Lacruz clarifies that at certain times of the month the plants photoelectric generated 19 GWh of electricity. “This implies three times more than the seven reactors of the Spanish nuclear park produce“, says the president of Avaesen.

Declining demand

April was marked by unusually low prices thanks to photovoltaic and wind power, as well as lower demand electricity through soft spring temperatures. The average price on the wholesale market is much lower than in March (20.27 euros), which was already very low and This was even lower than the minimum recorded during the pandemic. coronavirus when it closed in May 2020 at an average of €21.25/MWh.

Electricity prices on the wholesale market They started sinking in March. (especially after Easter) due to the huge amount of renewable energy available as a result of increasing penetration of green energy due to decarbonisation commitments.

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