electricity market

Electrical market

Electricity market in Spain: win-win rules for power companies

MADRID | By J.P. Marín Arrese | The Spanish government is thoroughly reshuffling the electricity market. Confronted with a ramping deficit between market prices and overall costs, transferred into automatic commitments to fill the gap, it is taking tough action to curb an unsustainable situation. The unwarranted imbalance is mainly due to an overgenerous policy, implemented by the former Executive, in fostering renewable energies. Fat subsidies, coupled with preferential access to the market, have propelled electricity generation costs. As demand slumped in the crisis, the share of highly expensive green energies markedly increased the toll.