The average price of the daily electricity market for tomorrow, the 29th, has closed at 4.05 euros/MWh, according to auction data published by the market operator, OMIE. A price that exceeds 0.66 euros/MWh this Thursday, but remains well below the average prices for this month of March, until today, at an average of 22.12 euros/MWh, and which have already represented a drop of 44% compared to February. The current weather situation, with abundant rain and wind, and the usual drop in demand on holidays are contributing to pool stay depressed.
According to OMIE data, from 12 noon today to 6 p.m. tomorrow, the price remains below the euro in most hours, or barely 1 euro/MWH. From that time onwards, there is a rise to 21.42 euros/Wh between 9 and 10 p.m. These low prices especially benefit consumers who have contracted the regulated rate, the Voluntary Small Consumer Price (PVPC), some eight million, whose bill is directly linked to the prices of the pool. The rest of the users in the free market, up to 22 million, have fixed-term price contracts. Both the first and the second will continue to pay in April VAT at 21%Therefore, according to the regulations, this year, if one month the average market price falls below 45 euros/MWh, in the next the VAT to be applied to the invoice is 21%. If it goes above that limit, this tax drops to 10%. Precisely, the Ministry of Finance has attributed the rise in the CPI in March to 3.2% to VAT on electricity.
This context of low prices and electricity demand at 20-year-old levels is causing serious problems for investors in the photovoltaic sector, as announced today. Five days. According to an energy report by Grupo ASE, the deployment of self-consumption, the promotion of energy efficiency, the closure of industries during the years of the energy crisis and milder temperatures are causing the collapse of demand, up to 7.6% in the last five years. This is no longer in step, as was usual, with the growth of the economy.
The drop in consumption is coupled with a sharp drop in prices, up to 71% compared to a year ago, which has been contributed by the strong deployment of photovoltaics, which accounts for up to 50% of generation in hours. of filing many days.
Low prices can lead many solar plants, already underway or planned, to bankruptcy or paralysis, according to the aforementioned report, since banks are being reluctant to finance these companies at current market prices. It must be remembered that only in 2022 did the average price for the entire year exceed 200 euros/MWh and this month it has barely exceeded 22 euros. One of the problems of small companies in the sector that charge the market price is the difficulties they encounter in being able to sign term contracts (PPA), which would serve as a shield.
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