Gas pushes the price of electricity up 13.1%

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In the first fifteen days of May the pool stands at €48.25/MWh, 13.1% above the close of April and 2.4% more expensive than a year ago. Behind this bullish evolution is the rise in the price of gas, as explained by Grupo ASE technicians .

Experts point out that gas makes the production of combined cycle plants more Email Data expensive and, therefore, the price at which they can offer electricity, which raises the price ceiling for all technologies and they are offered more expensive.

The thermal gap (gas and coal) this fortnight is at very low levels, just 14%, compared to the 25.4% that represented the first fortnight of May last year. Then fossil sources acted as a backup source with very competitive matching prices, around €45/MWh.

Now, however, gas and coal are just entering. Consequently, their starting price is higher, which places them at the last place in the queue to enter the market. Another more local issue, but which is also introducing tension because it looms over the combined cycles, is the imminent expiration of capacity payments, which expires on June 30 and are pending negotiation.




Hydraulic reserves are at the highest level in the last 10 years and are 55% above last year. Logically, there is greater hydraulic production, 79% higher than a year ago.

Wind energy has also increased its production: 34.5% compared to May 2017. According to Grupo ASE analysts , based on historical data, the expected price should have been around €40/MWh, but it is moving above €50/MWh.