Electricity Prices Hit Record Low in Spain Amid Market Fluctuations
The average price of electricity falls to €3.03/MWh this Sunday, marking a significant deviation from last year's rates.
On March 30, 2025, the average price of electricity in Spain dropped to €3.03 per megawatt-hour (MWh), the lowest level since early June 2024. This significant reduction reflects a continued trend of declining electricity prices, following a previous day's price of €4.32/MWh.
Throughout much of the day, prices are expected to remain at zero or even in negative territory.
Data published by the Iberian Energy Market Operator (OMIE) indicated that the maximum price for this Sunday will reach €35.01/MWh between 8:00 PM and 9:00 PM. Conversely, the minimum price is anticipated to occur between 3:00 PM and 4:00 PM, with a negative value of -€5.21/MWh.
Notably, from 7:00 AM to 7:00 PM, the price will remain at €0 or in negative numbers for 12 hours.
The current price of electricity reflects 17 consecutive days below €100/MWh.
In stark contrast, a recent high of €111.73/MWh was recorded on March 13, 2025. For the month of March 2025, the average price of electricity stands at €53.81/MWh, which is over double the average of €20.28/MWh seen in March 2024.
The annual average cost of electricity is reported at €85.89/MWh.
In comparison, 2024 concluded with an average price of €63.04/MWh, representing a 28% reduction from 2023 and a 35.8% decline from the average of the previous five years.
However, consumers must also consider additional fixed costs such as tolls, charges, and system adjustments.
The established pool price does not accurately reflect the final electricity bill for consumers on regulated tariffs.
A reform implemented in 2024 introduced a new calculation method for the PVPC tariff, integrating a basket of medium- and long-term prices to mitigate drastic fluctuations, while still maintaining short-term pricing references to encourage efficiency and savings.
As part of this reform, the correlation between the pool price and consumer rates will gradually decrease.
In 2024, this correlation was set at 25%, increasing to 40% in 2025, and projected to reach 55% by 2026.
Simultaneously, inflation in Spain decreased to 2.3% in March 2025, a reduction of seven-tenths from the 3% recorded in February.
This moderation is attributed to falling electricity prices and a decrease in fuel costs, with the impact of severe weather further enhancing renewable energy contributions to the grid.
The National Statistics Institute (INE) indicated that the CPI's decline reflects contrasting trends from earlier months, where energy prices had driven inflation upward.
The recent decrease in prices can also be contrasted against the same period last year when electricity prices were significantly higher.
Notably, the inflation rate excluding energy and unprocessed food stands at 2%, marking its lowest level in over three years.
Throughout much of the day, prices are expected to remain at zero or even in negative territory.
Data published by the Iberian Energy Market Operator (OMIE) indicated that the maximum price for this Sunday will reach €35.01/MWh between 8:00 PM and 9:00 PM. Conversely, the minimum price is anticipated to occur between 3:00 PM and 4:00 PM, with a negative value of -€5.21/MWh.
Notably, from 7:00 AM to 7:00 PM, the price will remain at €0 or in negative numbers for 12 hours.
The current price of electricity reflects 17 consecutive days below €100/MWh.
In stark contrast, a recent high of €111.73/MWh was recorded on March 13, 2025. For the month of March 2025, the average price of electricity stands at €53.81/MWh, which is over double the average of €20.28/MWh seen in March 2024.
The annual average cost of electricity is reported at €85.89/MWh.
In comparison, 2024 concluded with an average price of €63.04/MWh, representing a 28% reduction from 2023 and a 35.8% decline from the average of the previous five years.
However, consumers must also consider additional fixed costs such as tolls, charges, and system adjustments.
The established pool price does not accurately reflect the final electricity bill for consumers on regulated tariffs.
A reform implemented in 2024 introduced a new calculation method for the PVPC tariff, integrating a basket of medium- and long-term prices to mitigate drastic fluctuations, while still maintaining short-term pricing references to encourage efficiency and savings.
As part of this reform, the correlation between the pool price and consumer rates will gradually decrease.
In 2024, this correlation was set at 25%, increasing to 40% in 2025, and projected to reach 55% by 2026.
Simultaneously, inflation in Spain decreased to 2.3% in March 2025, a reduction of seven-tenths from the 3% recorded in February.
This moderation is attributed to falling electricity prices and a decrease in fuel costs, with the impact of severe weather further enhancing renewable energy contributions to the grid.
The National Statistics Institute (INE) indicated that the CPI's decline reflects contrasting trends from earlier months, where energy prices had driven inflation upward.
The recent decrease in prices can also be contrasted against the same period last year when electricity prices were significantly higher.
Notably, the inflation rate excluding energy and unprocessed food stands at 2%, marking its lowest level in over three years.
Translation:
Translated by AI
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