After four days with electricity prices below €6, this week will be the lowest price of the year, with average electricity costs of €26. This puts prices below those of the third week in January. At that time, electricity cost more than €37 per week on average.
The average electricity price on the wholesale market, which serves as a reference for customers with a regulated tariff or PVPC, will break its annual low this Saturday at €1.51/megawatt-hour (MWh) in what will be the cheapest week of this 2023.
In fact, the price per MWh will be zero euros between 3.00 pm and 4.00 pm. Although, that does not mean electricity will be free for consumers. The bill also consists of tax and charges. However, the price will be below the euro for seven hours, between 11.00 am and 6.00 pm. The highest price, €4.3, has to be paid between 7.00 pm and 10.00 pm.
November price trend
The price of €1.51/MWh is still lower than Thursday’s, when it fell to €4.42 /MWh. It is 17% lower than the €1.82 /MWh of 31 December. This was when the lowest price of 2022 was recorded, and the Iberian exception was already in force. On the first Saturday of November 2022, the price was €144.29, including the Iberian exception.
This month, the mechanism does not take effect as the gas price in the Iberian Mibgas market has at all times remained below the maximum price set by the government for November, which is €63.9/MWh.
So far in November, the average electricity price has not exceeded €4. These figures lead us to expect that the accumulated average for this year (€91/MWh) will continue to fall. Although probably not at the current pace.
Record renewable energy figures due to storm Ciarán
All this takes place against a backdrop where renewable energy production is booming after registering record figures on Thursday, with 73.3% of electricity produced in Spain being generated by clean energy. This was mainly wind power, after storm Ciarán swept through Spain.
This new record is higher than the 70.5% achieved on 20 October, also due to bad weather after long weeks of drought and low renewables yields. This weekend, electricity prices are expected to remain near the record low. This is due to heavy showers and wind gusts that will continue to maintain high levels of wind and hydropower production.