Electricity prices have soared to their highest level in almost two decades in Spain this year.
Countries across Europe have also faced similar soaring costs. The rising demand for natural gas and the increasing costs of European Union permits for each unit of emitted carbon, has led to this extreme rise in prices.
Most European power markets rely on the marginal cost to set prices, meaning the overall price is set by the cost of bringing the next unit of power to the market. As cheap renewable generation is intermittent and not enough to cover the high electricity demand, even most green electricity markets have kept fossil facilities for back-up. Fossil facilities required to provide sufficient electricity depend on costlier gas. According to the marginal cost rule, cheap renewable energy is being sold for the same price as more expensive fossil fuel-based power, forcing prices up further.
We provide a daily updated dashboard showing hourly electricity prices for the Spanish electricity market spanning the last 6 years, so we can better understand longer term electricity price trends.
This is a good example of the reporting solutions included into our Energy Strategy Support Tool. We hope you enjoy it.
If you have any questions about our data services or reporting tools, please contact us.