Price of electricity drops to €21.12/MWh, a reduction of 60% in one day

The wholesale price of electricity in Spain's PVPC regulated market will drop to its lowest point since May 2021. On Friday, the cost will average at €21.12/MWh, according to the Iberian Electricity Market Operator (OMIE).

The drop represents the lowest price of electricity in 19 months, after a 60% reduction in comparison to the previous day.

The reduction is driven by the increase in energy produced by wind and the Iberian peninsula exception approved by the Spanish, Portuguese, and EU Commission authorities. If this measure were not in place, the actual cost would be €102.07/MWh.

So far, the lowest price this year was registered on December 22, when the wholesale price of electricity was €52.51/MWh.

These low prices are due to the lower renewable energy because of the "weather anomaly with much warmer temperatures than usual for the time of the year," Spanish vice president and environmental transition minister Teresa Ribera tweeted.

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