January electricity price in Spain (€70/MWh) half that of large European economies (€140/MWh)


ASE Group | Renewable generation reached 13,559 GWh in January, beating its previous record in March 2018 (13,204 GWh). The pull from wind and hydro has allowed renewables to respond to 65.1% of electricity demand, its highest mark to date. Wind power leads the mix with 32.4% of the total, after producing 38.1% more than a year ago. Meanwhile, hydroelectric power increased by 94.2% compared to a year ago, according to analysts at the ASE Group.

Combined cycle gas plants (CCGT) have barely covered 10.2% of demand, and not only because of the abundance of renewables. It has also been influenced by the fact that the nuclear fleet has been operating at full load and that electricity demand has fallen by 3.2%.

The price of electricity has fallen in Europe owing to the high temperatures of the first fortnight (which reduced energy demand), the strong increase in wind power production and the reduction in the price of gas. Thus, the average price in the major European economies (Germany, France, Italy and the United Kingdom) stood at 140.02 €/MWh, a decrease of 48.65% compared to December (272 €/MWh).

In Spain, in January, the daily price on the Spanish wholesale market was 69.55 €/MWh. Adding the extra cost for consumers due to the gas cap (1.34 €/MWh), it stands at 70.90 €/MWh. This is 47.6% lower than in December and 64.9% lower than a year ago. This is explained by the strong production of renewables, which has reduced the activity of combined cycle gas plants and the cost of the adjustment for the gas cap, at its lowest level since it was applied in June 2022.

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