ASE Group : In September, the daily price of electricity on the Spanish wholesale market (POOL) closed at 103.34 €/MWh. This is 7.6% more expensive than in August, but 57.6% below its level a year ago.
The reduction of wind and photovoltaic has meant a greater presence of combined cycle gas (CCG) in the generation mix, causing the price to rise. ASE Group analysts point out that this rise has not been greater because France has recovered normality (60%) in its nuclear generation and has exported more to Spain and because demand continues to sink, especially in the central hours.
The average price of electricity in the large European economies (Germany, France, the United Kingdom, Italy and the Netherlands) was 100.4 €/MWh, which is 3% lower than in Spain. France was the lowest (88.71 €/MWh), Italy the highest (116.36 €/MWh) and Germany was very close to the average, with 100.72 €/MWh.
Electricity generation falls by 12.4% due to lower exports
This month, electricity generation in Spain has plummeted by 12.4% compared to the same period last year. ASE Group analysts point out that this fall is not only related to the reduction in demand, but also to the sharp decline in the export balance, which is 77.9% lower than in September 2022.
The Spanish balance with France has changed, becoming an importer in recent months. The greater availability of the French nuclear plants, which are now operating at 60% capacity, has allowed it to recover 13,000 MWh of nuclear power compared to last year and thus export electricity to Spain and other countries.
Industrial energy demand continues to slump
Industrial energy demand continues to show no signs of recovery, despite the fact that electricity and gas prices have fallen significantly compared to last year, which, according to ASE Group analysts, is a structural reduction.
Electricity consumption by large companies has fallen by 10.6% in the last twelve months and now only represents 46% of total demand. At the same time, the decline in industrial gas demand (with the exception of the electricity and refining sectors) has accumulated 17.1%.
This reduction could be related to several factors, such as, according to ASE Group analysts, lower economic activity, the response to high prices or the increase in self-consumption photovoltaic installations in industry, which represent 47% of the total installations in Spain.
With regard to general demand, September recorded a 3.4% drop compared to the same month last year and accumulates a 4.3% drop so far in 2023. The increase in self-consumption installations continues to have a major impact on the reduction in demand during solar hours, with falls of more than 6%.
